Tax Shield Value Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest e

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Tax Shield Value Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest e

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Tax Shield Value
Wilde Software Development has a 12% unlevered cost of equity.Wilde forecasts the following interest expenses, which are expectedto grow at a constant 5% 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.
$
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