Multiple Choice
Suppose a project financed via an issue of debt requires six annual interest payments of $20 million each year.If the cost of debt is 8%,and the present value of the interest rate tax shield is $27.74 million,what is the firm's tax rate?
A) 25%
B) 30%
C) 33%
D) 35%
E) 40%
Correct Answer:
Verified
Correct Answer:
Verified
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