Multiple Choice
Suppose a project financed via an issue of debt requires five annual interest payments of $20 million each year. If the tax rate is 30% and the cost of debt is 5%, what is the value of the interest rate tax shield?
A) $22.25 million
B) $22.67 million
C) $25.98 million
D) $32.35 million
Correct Answer:
Verified
Correct Answer:
Verified
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