What is the value of the tax shield if the value of the firm is $5 million, its value if unlevered would be $4.78 million, and the present value of bankruptcy and agency costs is $360,000?a) $140,000b) $220,000c) $360,000d) $580,000

What is the value of the tax shield if the value of the firm is $5 mil

1.	What is the value of the tax shield if the value of the firm is $5 million, its value if unlevered would be $4.78 million, and the present value of bankruptcy and agency costs is $360,000?a) $140,000b) $220,000c) $360,000d) $580,000
Answer» d) $580,000.

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What is the value of the tax shield if the value of the firm is $5 million, its value if unlevered would be $4.78 million, and the present value of bankruptcy and agency costs is $360,000?a) $140,000b) $220,000c) $360,000d) $580,000

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