What is the value of the interest rate tax shield
Problem
Suppose a project ?nanced Via an issue of debt requires ?ve annual interest payments of $10 million each year. If the tax rate is 21% and the cost of debt is 7%, What is the value of the interest rate tax shield?
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Suppose a project ?nanced Via an issue of debt require ?ve annual interest payments of $10 million each year. What is the value of the interest rate tax shield?
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