Sunday, May 31, 2015

3. Establishment Industries borrows $1,040 million at an interest rate of 6.9%

Establishment Industries borrows $1,040 million at an interest rate of 6.9%. It expects to maintain this debt level into the far future. What is the present value of interest tax shields? Establishment will pay tax at an effective rate of 37%.

Click here: 3. Establishment Industries borrows $1,040 million at an interest rate of 6.9%