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Assume that Microsoft has a total market value of $ 300.6 billion and a marginal tax rate of 35 %. If it permanently changes its
Assume that Microsoft has a total market value of $ 300.6 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
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