Assume That Five Years Have Passed Since Wyatt Issued This

question 77

Multiple Choice

Assume that five years have passed since Wyatt issued this debt.While tax rates have remained at 40%,interest rates have dropped so that Wyatt's current cost of debt capital is now only 4%.The present value of Wyatt's annual interest tax shield is now closest to:

• A)$2.8 million
• B)$40.0 million
• C)$60.0 million
• D)$70.0 million

---

Definitions:

Extensor Surfaces

The outer or posterior surfaces of limbs, where the extensor muscles are located, responsible for straightening joints.

Anaphylactic Reaction

A severe, potentially life-threatening allergic response that requires immediate medical intervention.

Epinephrine

A hormone and medication, also known as adrenaline, used to treat allergic reactions, cardiac arrest, and other conditions requiring immediate action.

Cyanotic

A condition where the skin appears blue due to a lack of oxygen in the blood.