Wilde Software Development has a 13% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 2% rate after Year 3. Wilde's tax rate is 25%.
Year 1 Year 2 Year 3 Interest expenses $75 $105 $150
What is the horizon value of the interest tax shield? Do not round intermediate calculations. Round your answer to the nearest cent.
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What is the total value of the interest tax shield at Year 0? Do not round intermediate calculations. Round your answer to the nearest cent
Wilde Software Development has a 13% unlevered cost of equity. Wilde forecasts the following interest expenses, which ar
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