Question: Tax Shield Value Wilde Software Development has an 11% unlevered cost of equity. Wide forecasts the following interest expenses, which are expected to grow at
Tax Shield Value Wilde Software Development has an 11% unlevered cost of equity. Wide forecasts the following interest expenses, which are expected to grow at a constant sa rete after year. Wilde's tax rate is 25% Year 1 Year 2 Year 3 590 $115 3140 Interest expenses What is the horizon value of the Interest tax thead? Do not round intermediate calculations. Round your answer to the nearest cent. 5 b. What is the total value of the interest tax shield of Year 07 Do not round intermediate calculations. Hound your onswer to the nearest cont
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