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2. Vinny's Vineyard (VV) has a current market value of $100 million and a D/E ratio of 0.2. W believes they can increase value by

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2. Vinny's Vineyard (VV) has a current market value of $100 million and a D/E ratio of 0.2. W believes they can increase value by increasing leverage and they intend to double their current debt and use the proceeds to repurchase stock. If VV's tax rate is 28%, then what is the value of the debt tax shield this plan will create

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