In the year ending January 2008 Wal-Mart paid out Rs 1 326-02002

Online Quiz This subjective question is related to the book/course vu mgt501 Human Resource Management. It can also be found in vu mgt501 Mid Term Solved Past Paper No. 1.

Question 1: In the year ending January 2008, Wal-Mart paid out Rs.1,326 million as debt interest. How much more tax would Wal-Mart have paid if the firm had been entirely financed byequity. What would be the present value of Wal-Mart's interest tax shield if the companyplanned to keep its borrowing permanently at the 2008 level. Assume an interest rate of8% and a corporate tax rate of 35%.

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