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Akansan inc. has the following information for its debs: The debt amount is $25 milion, the interest rate is 10%, and coporate tax rate is

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Akansan inc. has the following information for its debs: The debt amount is $25 milion, the interest rate is 10%, and coporate tax rate is 21%. Assuming that interest payment is paid at the end of each year, the debt will expire in five years, and Arkansan inc, will pay off the entire debt amount of $25 million at the expiration date, i.e. five years from now Arkansan inc. has a cost of equity of 12%. What is the present value of Arkansan Inc.'s interest tax shield today? $2,992,032 $1,990,163 $1,340,845 $1,892,508 54,500,545 Akansan inc. has the following information for its debs: The debt amount is $25 milion, the interest rate is 10%, and coporate tax rate is 21%. Assuming that interest payment is paid at the end of each year, the debt will expire in five years, and Arkansan inc, will pay off the entire debt amount of $25 million at the expiration date, i.e. five years from now Arkansan inc. has a cost of equity of 12%. What is the present value of Arkansan Inc.'s interest tax shield today? $2,992,032 $1,990,163 $1,340,845 $1,892,508 54,500,545

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