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Posted on Oct 06, 2024

If a firm borrows $ 5 0 , 0 0 0 , 0 0 0 for one year at an interest rate of 7 %

If a firm borrows $

50, 000, 000

for one year at an interest rate of

7 %,

what is the present value of the interest tax shield? Assume a

26 %

marginal corporate tax rate

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