Multiple Choice
Suppose a project financed via an issue of debt requires five annual interest payments of $20 million each year.If the tax rate is 30%,and the present value of the interest tax shield is 25.98 million,what is the firm's cost of debt?
A) 3%
B) 4%
C) 5%
D) 6%
E) 7%
Correct Answer:
Verified
Correct Answer:
Verified
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