Your firm has a $250,000 of debt outstanding that is selling at par. These bonds have...
Your firm has a $250,000 of debt outstanding that is selling at par. These bonds have a coupon rate of 7 percent. What is the amount of the annual interest tax shield given a tax rate of 35 percent?
Homework Answers
Debt = 250000
Coupon rate = 7%
Tax rate = 35%
Amount of annual interest tax shield given:
=250000*0.07*0.35
=6125
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