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If a firm permanently borrows $100 million at an interest rate of 8%, what is the present value of the interest tax shield? (Assume that
If a firm permanently borrows $100 million at an interest rate of 8%, what is the present value of the interest tax shield? (Assume that the tax rate is 30%)
A.$8.00 million | |
B.$5.6 million | |
C.$30 million | |
D.$26.67 million | |
E.None of the above |
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