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i need help with all parts please asap Suppose the Your firm decides to add debt so it will pay an additional $25 million in

i need help with all parts please asap image text in transcribed
Suppose the Your firm decides to add debt so it will pay an additional $25 million in interest each year. It will pay this interest expense by cutting its dividend a. How much will debt holders receive after paying taxes on the interest they earn? b. By how much will the firm need to cut its dividend each year to pay this interest expense? tax rate is 38%, and investors pay a tax rate of 15% on income from di Sor capital gains and a tax rate of 32.7% on interest this cut in the dividend reduce equity holders' annual after-tax income? in total tax revenues each year? d. How much less will the government re e. What is the effective tax advantage of debt r'? a. How much wil debt holders receive after paying taxes on the interest they earn? After paying taxes on the interest, debt holders will receive S million. (Round to two decimal places.)

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