1 what is the amount of the annual interest tax shield for, Ask an Expert

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1. What is the amount of the annual interest tax shield for a firm with $24 million in debt that pays 8% interest if the firm is in the 30% tax bracket?

$1,920,000

$1,344,000

$576,000

2. An implicit cost of adding debt to the capital structure is that it:

Decreases the required return on equity

Leaves the required return on equity unchanged

Increases the required return on equity

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92860992

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