Wilde Software Development has a 10% unlevered cost of equity. Wilde forecasts the following interest...
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Accounting
Wilde Software Development has a 10% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 5% rate after Year 3. Wilde's tax rate is 25%.
Year 1
Year 2
Year 3
Interest expenses
$80
$95
$120
What is the horizon value of the interest tax shield? Do not round intermediate calculations. Round your answer to the nearest cent.
$
What is the total value of the interest tax shield at Year 0? Do not round intermediate calculations. Round your answer to the nearest cent.
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