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Given the following information, calculate the tax shield effect of a $200,000 loan (nearest answer). Interest Rate on Loan: 5% Tax Rate: 25% Sales: $1,000,000

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Given the following information, calculate the tax shield effect of a $200,000 loan (nearest answer). Interest Rate on Loan: 5% Tax Rate: 25% Sales: $1,000,000 Operating Profit margin: 25% P/E ratio: 10.7x O $2,500 O $20,000 O $5,000 O $3,500 O $6,500

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