Quantum design, inc. is considering adding debt to their capital structure. currently, the value of quantum designs is $3,000,000 and they are all-equity financed. the cfo would like to issue debt; specifically, $1,000,000 worth of bonds. this debt would mature in ten years. the interest on the bonds would be set at 5%. the cfo estimated that this is the appropriate required rate of return demanded by bondholders of similar debt issues.
quantum designs pays taxes at a rate of 30%.a. what is the annual interest tax shield? b. what is the present value of the interest tax shield? c. given your answer in part 2, what is the value of the firm with the debt? (hint: vl = vu + pvits).d. considering that most small firms in this industry experience direct and indirect costs of financial distress at about 20% of firm value (firm value when the firm is all equity financed, i. e., $3,000,000 in this case), what would be your recommendation to the cfo of quantum designs regarding the proposed change to their capital structure?

My first question is what benefits do you expect to achieve from career exploration? the benefits that i expect to achieve from career exploration. for me i think the benefits of exploring many different careers are that you get exposed to more, so it's easier for you to pick which one you like best. another benefit is that you get a more first hand view of what jobs are more likely to be needed in the future and that can be factored into your consideration. my second question is what do you expect to be the most challenging parts of your career planning process? why? the most challenging parts of my career planning process is trying to get things in order and trying to write this paragraph it is confusing and, hard work. and last but not least my third question is i think the most challenging part is taking the first step and really deciding on a career you want to pursue; there are so many options and it can be hard to choose.which jobs will allow me to make a living? ; what skills does emergency medical technician emergency medical services medical » physiology require?

Answerdue process;

Answera shift of the demand curve to the left;