Financial Accounting: Information for Decisions
Financial Accounting: Information for Decisions
8th Edition
ISBN: 9781259533006
Author: John J Wild
Publisher: McGraw-Hill Education
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KD Industries has 30 million shares outstanding with a market price of $20 per share and no debt. KD has had consistently stable earnings and pays a 35% tax rate. Management plans to borrow $200 million on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares. The present value of KD's interest tax shield is closest to a. $130 million b. $200 million c. $400 million d. $70 million
Correct answer please general accounting
Targeted pre tax income?

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Financial Accounting: Information for Decisions

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