If a firm borrows permanently 25 million at an interest


If a firm borrows permanently $25 Million at an interest rate of 7%, what is the present value of the interest tax shield? If a firm borrows $25 Million for one year at an interest rate of 8%, what is the present value of the interest tax shield? (Assume the corporate tax rate Tc = 0.35)

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Financial Management: If a firm borrows permanently 25 million at an interest
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