Multiple Choice
Juanita's Steak House has $14,000 of debt outstanding that is selling at par and has a coupon rate of 8%.The tax rate is 34%.What is the present value of the tax shield?
A) $2,823
B) $2,887
C) $4,080
D) $4,500
E) $4,760
Correct Answer:
Verified
Correct Answer:
Verified
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