Business, 27.11.2019 06:31, nyceastcoast

Sundance motor lodge has 5600 bonds outstanding with a face value of $1,000 each and a coupon rate of 6.7 percent. the interest is paid semi-annually. what is the present value of the interest tax shield if the tax rate is 32 percent? (that is, how much does the tax shield add to the value of the firm? )

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Sundance motor lodge has 5600 bonds outstanding with a face value of $1,000 each and a coupon rate o...