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Earnings before interest = $0.5 million, D = $1 million, cost of debt = 10%, and company tax rate = 30%. What is the present

Earnings before interest = $0.5 million, D = $1 million, cost of debt = 10%, and company tax rate = 30%. What is the present value of the tax saving on interest?

A. $700 000 B. $300 000 C. $30 000 D. $70 000

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