Swedish Match is a profitable smokeless tobacco company.In the fall of 2005, Swedish Match is considering increasing a l

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answerhappygod
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Swedish Match is a profitable smokeless tobacco company.In the fall of 2005, Swedish Match is considering increasing a l

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Swedish Match is a profitable smokeless tobacco company.In the
fall of 2005, Swedish Match is considering increasing a leveraged
recapitalization. Assuming Swedish Match faces a 28% tax rate on
income and can issue bonds at a fixed krona yield of 4.5%. how much
will the company save in taxes for a SEK4 billion recapitalization?
what is the value of this interest tax shield?
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