Question: Tax Shield Value Wilde Software Development has a 13% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at
Tax Shield Value Wilde Software Development has a 13% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 4% rate after Year 3. Wilde's tax rate is 25%. Year 1 Year 2 Year 3 Interest expenses $90 $110 a. What is the horizon value of the Interest tax shield? Do not round intermediate calculations. Round your answer to the nearest $125 cent. 5 b. What is the total value of the interest tax shield at Year o? Do not round iskermediate calculations. Round your answer to the nearest cent
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