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Author Question: What is the amount of annual interest tax shield for a firm with $4 million in debt that pays 13% ... (Read 50 times)

cyc028

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on: Aug 7, 2023

Question 1

Vu Enterprises expects to have the following data during the coming year. What is Vu’s expected ROE?

Assets$300,000 Interest rate10%
D/A70% Tax rate35%
EBIT$38,000   

◦

10.51%


◦

11.14%


◦

12.28%


◦

13.49%



Question 2

What is the amount of annual interest tax shield for a firm with $4 million in debt that pays 13% interest if the corporate tax rate is 38%?

◦

$173,500


◦

$184,000


◦

$197,600


◦

$205,000

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Marked as best answer by cyc028 on Aug 7, 2023

bleep bloop

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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cyc028

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Reply 2 on: Aug 7, 2023
Gracias!

xiazhe

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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