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If a firm borrows $135 million for one year at an interest rate of 7.1 percent, what is the present value of the interest tax

If a firm borrows $135 million for one year at an interest rate of 7.1 percent, what is the present value of the interest tax shield? Assume a 21 percent marginal corporate tax rate.

A. $1.91 million

B. $2.19 million

C. $2.01 million

D. $1.72 million

E. $1.88 million

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