Multiple Choice
Suppose a project financed via an issue of debt requires six annual interest payments of $20 million each year. If the tax rate is 30% and the cost of debt is 8%, what is the value of the interest rate tax shield?
A) $32.64 million
B) $23.20 million
C) $31.35 million
D) $27.74 million
Correct Answer:
Verified
Correct Answer:
Verified
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