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    Fundamentals of Corporate Finance Study Set 12
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    Exam 18: Financial Modelling and Pro Forma Analysis
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    A Firm Has Interest Expense of $2500 Each Year for Ten
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A Firm Has Interest Expense of $2500 Each Year for Ten

Question 82

Question 82

Multiple Choice

A firm has interest expense of $2500 each year for ten years.If the tax rate is 30% and the discount rate is 7%,compute the value of the interest rate tax shield.


A) $5,744
B) $5918
C) $5268
D) $6987
E) $7212

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