Question: please answer ASAp Assume that Microsoft has a total market value of $298.4 billion and a marginal tax rate of 35%. If it permanently changes
please answer ASAp
Assume that Microsoft has a total market value of
$298.4
billion and a marginal tax rate of
35%.
If it permanently changes its leverage from no debt by taking on new debt in the amount of
13.4%
of its current market value, what is the present value of the tax shield it will create?
The present value of the tax shield is
$nothing
billion. (Round to two decimal places.)
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
