Arkansan Inc. has the following information for its debt: The debt amount is $25 million, 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?

A. $2,992,032

B. $1,990,163

C. $1,340,845

D. $1,892,508

E. $4,500,545

Arkansan inc, nas the folowing information for its debt. The debt amount is $25 million, the interest rate is. 10%, and coporate tax rato is 21%. Assuming that intorest poymont is Arkansan inc. has a cost of equly of 12%. What is the present valuo of Arkansan Ine.'s interest tax shloid today? $2,992,032 $1,090,163 51,340,845 51,892,500 54,500,545