Multiple Choice
Newborn Nursery has 8,000 bonds outstanding with a face value of $1,000 each.The coupon rate is 6.5 percent and the tax rate is 40 percent.What is the present value of the interest tax shield?
A) $2.82 million
B) $2.83 million
C) $3.09 million
D) $3.13 million
E) $3.20 million
Correct Answer:
Verified
Correct Answer:
Verified
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