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Finance major need asap. Braxton Enterprises currently has debt outstanding of $15million and an interest rate of 7 %. Braxton plans to reduce its debt
Finance major need asap.
Braxton Enterprises currently has debt outstanding of $15million and an interest rate of
7 %. Braxton plans to reduce its debt by repaying $ 3 million in principal at the end of each year for the next five years. IfBraxton's marginal corporate tax rate is 35 %, what is the interest tax shield fromBraxton's debt in each of the next fiveyears? The interest tax shield in year one is $_______ million. (Round to three decimalplaces.)
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