DLTuckers Has $21,000 of Debt Outstanding That Is Selling at Par

question 41

Multiple Choice

D.L.Tuckers has $21,000 of debt outstanding that is selling at par and has a coupon rate of 7.5 percent.The tax rate is 32 percent.What is the present value of the tax shield?

• A)$504
• B)$615
• C)$644
• D)$6,200
• E)$6,720

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