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Fladers Inc. has an EBIT of $10,000, and debt of $1,250 with an annual 11% coupon. The tax rate is 30%. If the company has

Fladers Inc. has an EBIT of $10,000, and debt of $1,250 with an annual 11%

coupon. The tax rate is 30%.

If the company has an unlevered cost of capital of 13%, What is the tax shield that the company can get from IRS per year?

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