Establishment Industries borrows $800 million at an interest rate of 7.6%. Establishment will pay tax at an effective marginal rate of 35%. What is the present value of interest tax shields if:

a.	It expects to maintain this debt level into the far future? (Enter your answer in millions of dollars.)

Present value

$ million

b.	It expects to repay the debt at the end of 5 years? (Enter your answer in millions of dollars rounded to 2 decimal places.)

Present value

$ million

c.	It expects to maintain a constant debt ratio once it borrows the $800 million and rAssets = 10%? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place.)

Present value

$ million