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A company has interest expenses totaling = $ 7 2 2 MM , for which they pay 7 % / annum to their lender. Last
A company has interest expenses totaling $ MM for which they pay annum to their lender. Last year, the company paid $ MM in tax, based on earnings before taxes of $M; what amount of additional taxes would the co pay if they were all equityfinanced ie no debt and what is the PV of tax shield assume all metrics stay constant in perpetuity
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