Multiple Choice
Suppose a project financed via an issue of debt requires five annual interest payments of $18 million each year. If the tax rate is 35% and the cost of debt is 7%, what is the value of the interest rate tax shield?
A) $20.66 million
B) $31.00 million
C) $25.83 million
D) $51.66 million
Correct Answer:
Verified
Correct Answer:
Verified
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