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DBF borrows $2.91B by issuing 19-year bonds. ECB's cost of debt is 4.49%, so it will need to pay interest each year for the next
DBF borrows $2.91B by issuing 19-year bonds. ECB's cost of debt is 4.49%, so it will need to pay interest each year for the next 19 years, and then repay the principal $2.91B in year 19. ECB's marginal tax rate will remain 38.11% throughout this period. By how much does the interest tax shield increase the value of DBF?
NOTE: Provide your answers in Millions. E.G. for 100M you must enter 100.0000, for 20M you must enter 20.000, etc.
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