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DBF borrows $10B by issuing 8 year bonds. ECB's cost of debt is 13%, so it will need to pay interest each year for the

DBF borrows $10B by issuing 8 year bonds. ECB's cost of debt is 13%, so it will need to pay interest each year for the next 8 years, and then repay the principal $10 in year 8. ECB's marginal tax rate will remain 36% throughout this period. By how much does the interest tax shield increase the value of DBF?

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