Question: Dothraki Enterprises is considering permanently adding an additional $77 million of debt to its capital structure.Dothraki's corporate tax rate is 21%. If investors pay a
Dothraki Enterprises is considering permanently adding an additional $77 million of debt to its capital structure.Dothraki's corporate tax rate is 21%. If investors pay a tax rate of 37 % on interestincome, and a tax rate of 20 % on income from dividends and capitalgains, what is the value of the interest tax shield from the newdebt?
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