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D-john D-john
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4 years ago
Suppose a project financed via an issue of debt requires five annual interest payments of $10 million each year.  If the tax rate is 30% and the cost of debt is 6%, what is the value of the interest rate tax shield?

▸ $13.20 million

▸
$12.21 million


▸ $11.35 million

▸ $12.64 million
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
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jzhu11jzhu11
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4 years ago
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D-john Author
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4 years ago
Good timing, thanks!
smdavis
wrote...

Yesterday
Thank you, thank you, thank you!
jakechambo3
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2 hours ago
Smart ... Thanks!
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