Question 22 03 (Tax Shield Value) Wilde Software Development has a 14 unlevered cost of equity Wilde forecasts the following interest expenses, which are expected to grow at a constant 5 rate after Year 3 Wilde's tax rate is 25 Interest expenses Year 1 $90 Year 2 $120 Year 3 $140 What is the horizon value of the interest tax shield Do not round intermediate calculations Round your answer to the nearest cent $ What is the total value of the interest tax shield at Year 0 Do not round intermediate calculations Round your answer to the nearest cent $

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Question: Question #22-03 (Tax Shield Value) Wilde Software Development has a 14% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to

Question #22-03 (Tax Shield Value) Wilde Software Development has a 14% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 5% rate after Year 3. Wilde's tax rate is 25%.

Interest expenses - Year 1: $90 Year 2: $120 Year 3: $140

What is the horizon value of the interest tax shield? Do not round intermediate calculations. Round your answer to the nearest cent. $_____
What is the total value of the interest tax shield at Year 0? Do not round intermediate calculations. Round your answer to the nearest cent. $_____

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