Multiple Choice
Granny's Home Remedy has a $30 million bond issue outstanding with a coupon rate of 7.75 percent and a current yield of 7.67 percent.What is the present value of the tax shield if the tax rate is 34 percent?
A) $632,400
B) $625,872
C) $1.20 million
D) $8.16 million
E) $10.2 million
Correct Answer:
Verified
Correct Answer:
Verified
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