Georgas restaurants has 3500 bonds outstanding with a face, Ask an Expert

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Georga's Restaurants has 3500 bonds outstanding with a face value of $1,000 each and a coupon rate of 9.8 percent. The interest is paid semi-annually. What is the present value of the interest tax shield if the tax rate is 31 percent? (That is, how much does the tax shield add to the value of the firm?)

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Category:- Financial Management
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