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biliiy's is currently an all equity firm. The firm has decided to leverage its operations by issuing $120,000 of debt at an interest rate of

biliiy's is currently an all equity firm. The firm has decided to leverage its operations by issuing $120,000 of debt at an interest rate of 9.5 percent. If the tax rate is 21%, how much is the present value of the interest tax shield effect?

$45,925

$38,475

$22,393

$25,200

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