Earnings before interest = $0.5 million,D = $1 million,cost of debt = 10%,and company tax rate = 30%.What is the present value of the tax saving on interest?

Name: Earnings before interest = $0.5 million,D = $1 million,cost of debt = 10%,and company tax rate = 30%.What is the present value of the tax saving on interest?
Brand: Quizplus
Rating: 4.9 (56 reviews)

Question

Quizplus · Accepted Answer

The Answer of Earnings before interest = $0.5 million,D = $1 million,cost of debt = 10%,and company tax rate = 30%.What is the present value of the tax saving on interest?

Earnings Before Interest = $0