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Brute Force Cybernetics (BFC) has a forecast EBIT of $125,000 in perpetuity. BFCs ROE is 17% and its cost of debt is 12%. BFCs tax

Brute Force Cybernetics (BFC) has a forecast EBIT of $125,000 in perpetuity. BFCs ROE is 17% and its cost of debt is 12%. BFCs tax rate is 25%. If BFC has $200,000 in debt, what is the value of its tax-shield?

$34,000

$50,000

$6,000

$24,000

$31,250

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