Multiple Choice
Soul Foods has a $12 million bond issue outstanding with a coupon rate of 6.75 percent and a yield to maturity of 7.27 percent.What is the present value of the tax shield if the tax rate is 30 percent?
A) $283,500
B) $360,000
C) $3,053,400
D) $3,560,000
E) $3,600,000
Correct Answer:
Verified
Correct Answer:
Verified
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