Baker Breads Has $13,000 of Debt Outstanding That Is Selling

question 19

Multiple Choice

Baker Breads has $13,000 of debt outstanding that is selling at par and has a coupon rate of 7 percent.The tax rate is 35 percent.What is the present value of the tax shield?

• A)$318.50
• B)$8,450.00
• C)$910.00
• D)$4,550.00
• E)$4,760.50

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