Multiple Choice
Reena Industries has $10,000 of debt outstanding that is selling at par and has a coupon rate of 7%. The tax rate is 34%. What is the present value of the tax shield?
A) $2,800
B) $3,000
C) $3,400
D) $3,800
E) $7.000
Correct Answer:
Verified
Correct Answer:
Verified
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