Multiple Choice
Southern Foods has a $13 million bond issue outstanding with a coupon rate of 7.15 percent and a yield to maturity of 7.39 percent.What is the present value of the tax shield if the tax rate is 34 percent?
A) $283,140
B) $316,030
C) $4,053,400
D) $3,960,000
E) $4,420,000
Correct Answer:
Verified
Correct Answer:
Verified
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