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Author Question: In the year just past (Year 1) Hane Heavy Industries had no debt. Today is January 1 of Year 2. Hane ... (Read 78 times)

joblessjake

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on: Apr 25, 2021
In the year just past (Year 1) Hane Heavy Industries had no debt. Today is January 1 of Year 2. Hane is considering a plan to sell bonds worth $30B and use the proceeds to repurchase 2B shares (on the open market at $15/share). If Hane maintains this new level of debt in perpetuity, then what is the present value of the resulting interest tax shields? Assume that the debt is sold immediately, that the bonds are a perpetuity, and that interest is paid at the end of each year. Assume that the coupon rate on the bonds is 3.5% and that the tax rate is 13%.
◦ $3.9B
◦ $7.8B
◦ $13.7B
◦ $26.1B
◦ $30B
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Marked as best answer by joblessjake on Apr 25, 2021

Kjones0604

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Reply #1 on: Apr 25, 2021
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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joblessjake

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Reply 2 on: Apr 25, 2021
:D TYSM

frankwu0507

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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