Bay Transport Systems (BTS) currently has $50 million in debt outstanding. In addition to 9.0% interest, it plans to repay 6% of the remaining balance each year. If BTS has a marginal corporate tax rate of 21%, and if the interest tax shields have the same risk as the loan, what is the present value of the interest tax shield from the debt?

Answer rating: 100% (QA)

Given that BTS have currently 50 million interest 9 repay remaining balance 6 marginal cor... View the full answer