A firm plans to issue 700000 worth of debt at a ytm of 75


A firm plans to issue $700,000 worth of debt at a YTM of 7.5%. The debt is trading at par. The firm's marginal corporate tax rate is 30%. What is the present value of the tax savings in perpetuity?

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Finance Basics: A firm plans to issue 700000 worth of debt at a ytm of 75
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