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A company has a WACC equal to 15.00%, a constant and perpetual expected EBITDA equal to 3,100,000 Euro, an unlevered return on equity of 22.53% and it keeps a constant debt-to-equity ratio. If the tax rate is equal to 25% and the assets are fully depreciated,

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Question: What is the value of the interest rate tax shield?

Please show your all workings out.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91147427

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