What is the total value added from debt financing

Reference no: EM131949946

Question: The BSC Co. was planning to raise $2.5 million in perpetual debt at 11%. However, they just received an offer from the governor of a nearby state to raise the financing for them at 8% if they locate a new facility in that state. What is the total value added from debt financing if the tax rate is 34% and the state subsidizes the loan for the company?

Reference no: EM131949946

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