Harmony Ltd has $$12,000,000$ of debt outstanding at an interest rate of $11$ per cent. What is the present value of the debt tax shield if the debt has no maturity and if Harmony Ltd is subject to a $35$ per cent company tax rate?

Select one:

a$.$

$$12,000,000$

b$.$

$$4,200,000$

c$.$

None of these options

Clear my choice