Multiple Choice
Suppose a project financed via an issue of debt requires six annual interest payments of $18 million each year. If the tax rate is 35% and the cost of debt is 8%, what is the value of the interest rate tax shield?
A) $23.30 million
B) $29.12 million
C) $34.95 million
D) $58.25 million
Correct Answer:
Verified
Correct Answer:
Verified
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