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Other Fields Homework Help Finance Topic started by: johnpaech on Nov 20, 2017



Title: Your firm currently has $250 million in debt outstanding with an 8% interest rate. The terms of the ...
Post by: johnpaech on Nov 20, 2017
Your firm currently has $250 million in debt outstanding with an 8% interest rate.  The terms of the loan require the firm to repay $50 million of the balance each year.  Suppose that the marginal corporate tax rate is 35% and that the interest tax shields have the same risk as the loan.  What is the present value of the interest tax shields from this debt?


Title: Re: Your firm currently has $250 million in debt outstanding with an 8% interest rate. The terms of ...
Post by: anicid on Nov 20, 2017
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Title: Re: Your firm currently has $250 million in debt outstanding with an 8% interest rate. The terms of the ...
Post by: johnpaech on Aug 1, 2018
You took a load off my back, thanks for answering correctly