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c) A firm currently has $100 million in debt outstanding with a 10% interest rate. The terms of the loan require the firm to repay
c) A firm currently has $100 million in debt outstanding with a 10% interest rate. The terms of the loan require the firm to repay $25 million of the debt outstanding each year. The firm's marginal corporate tax rate is 40% and that the interest tax shields have the same risk as the loan. The present value of the interest tax shields from this debt is closest to:
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