Corporate Finance (4th Edition)

Chapter 15

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The firm’s value means the total amount raised ... more

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Interest tax shield refers to the reduction in ... more

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$270,260,722.52 ; Calculate the interest tax ... more

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Tax benefit generated in the form of interest tax ... more

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The present value (PV) of tax benefits from ... more

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The interest tax shield is to be recorded as an ... more

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The interest amount received by the debt holders ... more

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The corporate tax benefits of leverage are offset ... more

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The ideal debt percentage in company's capital ... more

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An average firm's interest cost is far below from ... more

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Interest tax shield of:Year 1: $1,120,000Year 2: $... more

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$8,301,345.54  ; Calculate the debt at the end of ... more

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$6,782,608.70 ; Calculate the interest tax shield ... more

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$(3,500,000) ; Excess cash is to be treated as ... more

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1.10% ; Calculate the weighted average debt by ... more

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13.425% ; Calculate the reduction due to interest ... more

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$2 per share ; Calculate the present value of tax-... more

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27.78% ; Interest tax shield refers to the tax-... more

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$86,538,461.50 ; Calculate the pre-tax income by ... more

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27.11% ; Calculate the tax rate for the year 2018 ... more

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The present value of the tax shield is $271,100,... more

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Book Value D/E ratio = 29.70Market Value D/E ratio... more

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The present value of tax shield is $1,355,500,000... more

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Based on the current stock price, it is not ... more

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