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A company with 2 0 0 million shares outstanding and no debt plans to issue permanent debt with a face value of $ 1 ,
A company with million shares outstanding and no debt plans to issue permanent debt with a face value of $ million in order to repurchase some of its shares. When this plan is announced, the company's share price jumps from $ to $ What is the company's tax rate, if we assume that its savings from debt tax shields are as risky as its debt? Express your answer as a fraction rounded to four decimal places. For example, if your answer is you should enter as your answer.
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