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Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which ar

Posted: Wed Jul 06, 2022 6:44 pm
by answerhappygod
Wilde Software Development has a 12% unlevered cost of equity.Wilde forecasts the following interest expenses, which are expectedto grow at a constant 3% 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.
$