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If a firm borrows $10 million for one year (i.e., the firm is levered for one year only) at an interest rate of 10%, what
If a firm borrows $10 million for one year (i.e., the firm is levered for one year only) at an interest rate of 10%, what is the present value of the interest tax shield? Assume that there are no personal taxes, and that the corporate tax rate is 20%.
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