Juanita's Steak House has $14,000 of debt outstanding that is selling at par and has a coupon rate of 8%.The tax rate is 34%.What is the present value of the tax shield?
A)$2,823
B)$2,887
C)$4,080
D)$4,500
E)$4,760

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The Answer of Juanita's Steak House has $14,000 of debt outstanding that is selling at par and has a coupon rate of 8%.The tax rate is 34%.What is the present value of the tax shield?
A)$2,823
B)$2,887
C)$4,080
D)$4,500
E)$4,760

Juanita's Steak House Has $14,000 of Debt Outstanding That Is