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Memphic Memphic
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6 years ago
The preset value of KD's interest tax shield is closest to:
A) $130 million
B) $200 million
C) $400 million
D) $70 million
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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wrote...
6 years ago
D
Explanation:  D) Tax Shield = Debt × τC = $200 million × .35 = $70 million
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