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#12 Bay Transport Systems (BTS) currently has $25 million in debt outstanding. In addition to 8.0% interest, it plans to repay 4% of the remaining

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Bay Transport Systems (BTS) currently has $25 million in debt outstanding. In addition to 8.0% interest, it plans to repay 4% of the remaining balance each year. If BTS has a marginal corporate tax rate of 30%, and if the interest tax shields have the same risk as the loan, what is the present value of the interest tax shield from the debt? The present value is $ million. (Round to two decimal places.)

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