Question: Wilde Software Development has a 1 4 % unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a

Wilde Software Development has a 14% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 3% rate after Year 3. Wilde's
tax rate is 25%.
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.
$
Wilde Software Development has a 14% unlevered cost of equity. Wilde

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