Suppose that Pearson Corporation has a capital structure which-00174
Suppose that Pearson Corporation has a capital structure which consists of both equity and debt. It had issued two million worth of bonds at 6.5 % p.a. The tax rate is 40%. Its EBIT is one million. The present value of tax shield for Pearson corporation would be
This multiple choice question (MCQ) is related to the book/course
vu acc501 Business Finance.
It can also be found in
vu acc501 Final Term - Quiz No.1.
Suppose that Pearson Corporation has a capital structure which consists of both equity and debt. It had issued two million worth of bonds at 6.5 % p.a. The tax rate is 40%. Its EBIT is one million. The present value of tax shield for Pearson corporation would be
Rs.1,000,000
Rs.1,200,000
Rs800,000
Rs.1,400,000
