If it permanently changes its leverage from no debt by


Assume that Microsoft has a total market value of $ 300.7 billion and a marginal tax rate of 35 %. If it permanently changes its leverage from no debt by taking on new debt in the amount of 12.7 % of its current market? value, what is the present value of the tax shield it will?create?

The present value of the tax shield is ?$________ billion (Round to two decimal places)

Solution Preview :

Prepared by a verified Expert
Finance Basics: If it permanently changes its leverage from no debt by
Reference No:- TGS02268532

Now Priced at $10 (50% Discount)

Recommended (90%)

Rated (4.3/5)