Question: Please solve the interest tax sheild for 5 years. please help Braxton Enterprises currently has debt outstanding of $45 million and an interest rate of
Please solve the interest tax sheild for 5 years. please help
Braxton Enterprises currently has debt outstanding of $45 million and an interest rate of 10%. Braxton plans to reduce its debt by repaying $9 million in principal at the end of each year for the next five years. If Braxton's marginal corporate tax rate is 25%, what is the interest tax shield from Braxton's debt in each of the next five years? The interest tax shield in year one is \$ million. (Round to three decimal places.) The interest tax shield in year two is S million. (Round to three decimal places.)
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