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Bayko wants to maintain leverage of 7%. Its cost of equity is 12% and its debt is 7%. Its tax rate is 25% and its
Bayko wants to maintain leverage of 7%. Its cost of equity is 12% and its debt is 7%. Its tax rate is 25% and its market capitalization is EUR 220 million. Its expected free cash flow is 10 million euros next year. What is the present value of the tax savings from interest deductibility?
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