When a firm changes its capital structure by issuing or retiring debt, for example, this change alters the firms unlevered free
1 answer:
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Answer:
$8,770.00
Explanation:
In this question we use the present value formula i.e shown in the attachment below:
Data provided in the question
Future value = $0
Rate of interest = 0.48%
NPER = 4 years × 12 months = 48 months
PMT = $205
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the answer would be $8,770.00
Answer:
The correct answer is A) $2.800
Explanation:
Using the straight-line method to depreciate, the calculation to find the depreciation tax shield is the following:
- Finding the depreciable cost:
- Finding the depreciation per year:
- Finally, the depreciation tax shield for 2018: