Question: Tax Shield Value Wilde 25%. Software Development has an 11% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow

 Tax Shield Value Wilde 25%. Software Development has an 11% unlevered

Tax Shield Value Wilde 25%. Software Development has an 11% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 2% rate after Year 3. Wilde's tax rate is Year 1 Year 2 $85 $115 Year 3 $145 Interest expenses a. What is the horizon value of the interest tax shield? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. 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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