Multiple Choice
Joe's BBQ Grill has $21,000 of debt outstanding that is selling at par and has a coupon rate of 6.5%. The tax rate is 35%. What is the present value of the tax shield?
A) $478
B) $790
C) $1,365
D) $4,780
E) $7,350
Correct Answer:
Verified
Correct Answer:
Verified
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