Multiple Choice
A firm has $60,000 of debt outstanding that is selling at par and has a coupon rate of 8%.The tax rate is 40%.What is the present value of the tax shield?
A) $1,760
B) $4,400
C) $24,000
D) $33,000
E) $60,000
Correct Answer:
Verified
Correct Answer:
Verified
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