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Firm A borrowed a5 year , nonamortizing loan at a cost of 5 7%. Firm paidtotal flotation cost of$14,000at the time of borrowing. The flotation

Firm A borrowed a5 year , nonamortizing loan at a cost of 5 7%.

Firm paidtotal flotation cost of$14,000at the time of borrowing.

The flotation cost will be amortized over5 year .

Corporate tax rate is34% .

What is the annual flotation cost tax shield?

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