Multiple Choice
Newborn Nursery has 12,000 bonds outstanding with a face value of $1,000 each.The coupon rate is 6.9 percent and the tax rate is 34 percent.What is the present value of the interest tax shield?
A) $4.14 million
B) $4.86 million
C) $3.87 million
D) $3.92 million
E) $4.08 million
Correct Answer:
Verified
Correct Answer:
Verified
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