Tax Shield Value Wilde Software Development has a 13% unlevered cost of equity. Wilde forecasts the following interest e
Posted: Sun Jul 03, 2022 12:53 pm
Tax Shield Value
Wilde Software Development has a 13% unlevered cost of equity.Wilde forecasts the following interest expenses, which are expectedto grow at a constant 2% rate after Year 3. Wilde's tax rate is25%.
What is the horizon value of the interest tax shield? Do notround intermediate calculations. Round your answer to the nearestcent.
$
What is the total value of the interest tax shield at Year 0? Donot round intermediate calculations. Round your answer to thenearest cent.
$
Wilde Software Development has a 13% unlevered cost of equity.Wilde forecasts the following interest expenses, which are expectedto grow at a constant 2% rate after Year 3. Wilde's tax rate is25%.
What is the horizon value of the interest tax shield? Do notround intermediate calculations. Round your answer to the nearestcent.
$
What is the total value of the interest tax shield at Year 0? Donot round intermediate calculations. Round your answer to thenearest cent.
$