Question: Show work in Excel (22-3) Tax Shield Value Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which

Show work in Excel

(22-3) Tax Shield Value

Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 4% rate afterYear 3. Wilde's tax rate is 25%

____________________Year 1Year 2Year 3

Interest expense$80$100$120

a.What is the horizon value of the interest tax shield?

b.What is the total value of the interest tax shield at Year 0

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