Use the Information for the Question(s)below

question 29

Essay

Use the information for the question(s)below.
Omicron Industries' Market Value Balance Sheet ($ Millions)
and Cost of Capital Omicron Industries' New Project Free Cash Flows (Millions) Assume that this new project is of average risk for Omicron and that the firm wants to hold constant its debt to equity ratio.
-Calculate the present value of the interest tax shield provided by Omicron's new project.

---

Definitions:

Bank Statement

A document issued by a bank that summarizes an account holder's transactions and financial activity over a specified period.

Checking Account

A bank account that allows for numerous withdrawals and deposits, intended primarily for daily transactions.

Check Register

A record book used to track checks written, deposits made, and the current balance of a checking account.

Endorser

Signature on the back of the check of the payee.