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NARA [144]
3 years ago
9

Assume the M&M with corporate taxes. The corporate tax rate is 40%. Your firm is currently unlevered with 100% equity. As of

now, the value of the firm’s equity is $400K, and the firm’s cost of capital is 10%. Assume that your firm can borrow at 4% from a bank. Suppose that you decided to lever up by reducing equity and increasing debt. As the result, your firm now has $250K in debt. Your firm plans to maintain this debt amount forever. What is the present value of the interest tax shield?
Business
1 answer:
Fynjy0 [20]3 years ago
7 0

Answer:

The present value of the interest tax shield is $100.

Explanation:

Present Value of interest tax Shield= Debt* Tax Rate

=$250*40%

=$100

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a bookstore sells 617 books on monday, 498 books on tuesday, and 563 books on wednesday. on which two days did the bookstore sel
OLga [1]

The two days on which the bookstore sells about 600 books are Monday(617) and Wednesday(563).

As of Monday, the sales of the bookstore were only 617, on Tuesday it was 498 and on Wednesday it was 563. As we arrange the data in ascending order as 498<563<617. We come to the conclusion that around 600 there are only two data which are 563 and 617. So, on Monday and Wednesday, the bookstore sells about 600 books.

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<u><em>brainly.com/question/13444388</em></u>

6 0
1 year ago
A T-bill quote sheet has 90-day T-bill quotes with a 5.77 ask and a 5.71 bid. If the bill has a $10,000 face value, an investor
Leona [35]

Answer:

a. $9,857.25

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Price = Face value * (1 - Bid*Days/360)

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Price = $9,857.25

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3 years ago
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Answer: true

Explanation: I’m not sure but I hope this helps
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Answer:

True

Explanation:

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