Welcome to Westonci.ca, your go-to destination for finding answers to all your questions. Join our expert community today! Get expert answers to your questions quickly and accurately from our dedicated community of professionals. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.
Sagot :
The presence value of tax shield is =522,000,000
What is Tax shield?
Tax shields is calculate by substraction cash flow form two different sessions.
To determine the present value for first session
Market value = $300 billion
Tax rate = 20%
Debt = 0
Tax payable= Tax rate/100% * Market Value
Tax payable = 20/100× $300 billion
= 600,000,000
To get present value of tax
Market value = $300 billion
Tax rate = 20%
Debt = 13% of $300 billion
= 390,000,000
Present Market Value = $300 billon - 390,000,000
= 2,610,000,000 i.e $2.6billion
Tax payable = 20/100 × $2.6 billion
=522,000,000
Learn more on tax shield here,
https://brainly.com/question/13932912
#SPJ1
Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
