Multiple Choice
Suppose a project financed via an issue of debt requires five annual interest payments of $12 million each year. If the tax rate is 35% and the cost of debt is 5%, what is the value of the interest rate tax shield?
A) 14.55 million
B) $21.82 million
C) $36.37 million
D) $18.18 million
Correct Answer:
Verified
Correct Answer:
Verified
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