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Assume that Microsoft has a total market value of $299.7 billion and a marginal tax rate of 35%. If it permanently changes its leverage from
Assume that Microsoft has a total market value of
$299.7
billion and a marginal tax rate of
35%.
If it permanently changes its leverage from no debt by taking on new debt in the amount of
13.2%
of its current market value, what is the present value of the tax shield it will create?
The present value of the tax shield is
$nothing
billion. (Round to two decimal places.)
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