Present value of the interest tax shield


Problem:

Kelner's Nursury has 8000 bonds outstanding with a face value of $1000 each. The coupon rate is 6.5 percent and the tax rate is 34%.

Required:

Question: What is the present value of the interest tax shield?

Note: Please provide through step by step calculations.

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Accounting Basics: Present value of the interest tax shield
Reference No:- TGS0889046

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