What is interest tax shield from? braxton debt

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Question

Braxton Enterprises currently has debt outstanding of 35 million and an interest rate of 7%. Braxton plans to reduce its debt by repaying million in principal at the end of each year for the next five years. If? Braxton's marginal corporate tax rate is ?21%, what is the interest tax shield from? Braxton's debt in each of the next five? years?

Reference no: EM133495951

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