What is the percentage value of the tax shield

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Indian Gaming Company has 10 million shares outstanding, trading now at INR 25 Per share. The firm has estimated the expected rate of return to share holders at 8%? It also has issued INR 200 million of long term bonds at an interest rate of 7%. It pays tax at rate of 35%. What is the after tax WACC of the firm?

What is the percentage value of the tax shield in the overall value of Indian Gaming Company?

Reference no: EM132951395

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