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What horizon value of interest tax shield for kennedy

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Reference no: EM133006364

Problem 1: Kennedy Technologies has a 15% unlevered cost of equity. Kennedy forecasts the following interest expense, which are expected to grow at a constant 2% rate after Year 3. Kennedy's tax rate is 30%. The interest expenses: Year 1 = $50.00, Year 2 = $110.00, Year 3 = $150.00. What is the horizon value of the interest tax shield? What is the total value of the interest tax shield at Year 0?

Reference no: EM133006364

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