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if a firm has 6.5 million in debt, $27.8 million in equity, a tax rate of 35%, and pays 7% interest on debt, what is

if a firm has 6.5 million in debt, $27.8 million in equity, a tax rate of 35%, and pays 7% interest on debt, what is the firms PV of the interest tac shields?

a. 202200

b. 327200

c. 2.275 million

d. 418910

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