Multiple Choice
If a firm permanently borrows $50 million at an interest rate of 10 percent, what is the present value of the interest tax shield? Assume a 21 percent marginal corporate tax rate.
A) $50.0 million
B) $25.0 million
C) $10.5 million
D) $1.5 million
Correct Answer:
Verified
Correct Answer:
Verified
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