Debt Policy & Value V

Consider the hypothetical firm with the $50\%$ Debt capital structure shown in The Debt Policy and Value case $($Handout #$18).$

In Table $3,$ what is the Value of the Financing Effect $($the Tax Shield$)$ for the firm with the $50\%$ Debt capital structure? $($Show your answer rounded to the nearest dollar, e$.$g$.1384)$

Numeric Response