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8. Carla's Traveling Circus, Inc., provides entertainment to small cities and towns. The firm, valued at $1.5 million, is levered with $700,000 of debt. Although

8. Carla's Traveling Circus, Inc., provides entertainment to small cities and towns. The firm, valued at $1.5 million, is levered with $700,000 of debt. Although the corporate tax rate is currently 34 percent, there is speculation that the rate will be raised to 40 percent. Calculate the change in the value of the tax shield if the tax rate increases

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