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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 398 Weeks Ago, 5 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Ten years have passed since Arnell issued ?$17 million in perpetual interest only debt with a 5 % annual coupon. Tax rates have remained the same at 35 % but interest rates have? dropped, so? Arnell's current cost of debt capital is 3 %.
a. What is? Arnell's annual interest tax? shield? The interest tax shield is ?$ _____. ? (Round to three decimal? places.) b. What is the present value of the interest tax shield? today? The present value of the interest tax shield is ?$ _______ million. ?(Round to two decimal? places.)
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