Question: Tax Shield Value Wilde Software Development has a 14% unlevered cost of equity. Wide forecasts the following interest expenses, which are expected to grow at
Tax Shield Value Wilde Software Development has a 14% unlevered cost of equity. Wide 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 $85 $100 $145 a. What is the horizon value of the interest tax shield? Do not found intermediate calculations found your answer to the nearest cent. $ 1508 3 b. What is the total value of the interest tax shield Year O? Do not round intermediate calculations, Round your answer to the nearest cont
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