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Company A has $13145152 in permanent debt outstanding. The firm will pay interest only on this debt. The firm's marginal tax rate is expected to
Company A has $13145152 in permanent debt outstanding. The firm will pay interest only on this debt. The firm's marginal tax rate is expected to be 35% for the foreseeable future. Suppose that the firm pays interest of 5.79% per year on its debt.
What is the present value of the interest tax shield, assuming its risk is the same as the loan?
Please show answer after decimals as well.
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