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  3. your firm currently has $ 116 million in debt outs

Your firm currently has $ 116 million in debt outstanding with a 9 % interest rate....

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Finance

Your firm currently has $ 116 million in debt outstanding with a9 % interest rate. The terms of the loan require the firm to repay$ 29 million of the balance each year. Suppose that the marginalcorporate tax rate is 35 % ?, and that the interest tax shieldshave the same risk as the loan. What is the present value of theinterest tax shields from this? debt?

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4.2 Ratings (618 Votes)
Solution The present value of the interest tax    See Answer
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