Suppose a project financed via an issue of debt requires six annual interest payments of $20 million each year.If the cost of debt is 8%,and the present value of the interest rate tax shield is $27.74 million,what is the firm's tax rate?
A)25%
B)30%
C)33%
D)35%
E)40%

Question

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The Answer of Suppose a project financed via an issue of debt requires six annual interest payments of $20 million each year.If the cost of debt is 8%,and the present value of the interest rate tax shield is $27.74 million,what is the firm's tax rate?
A)25%
B)30%
C)33%
D)35%
E)40%

Suppose a Project Financed Via an Issue of Debt Requires