Multiple Choice
If a firm borrows $50 million for one year at an interest rate of 9 percent, what is the present value of the interest tax shield? Assume a 21 percent marginal corporate tax rate.
A) $50.00 million
B) $17.50 million
C) $1.45 million
D) $0.87 million
Correct Answer:
Verified
Correct Answer:
Verified
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