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In 2013 a company pays 5 percent interest on a bond that has a value of $250,000. The company's marginal tax rate is 39 percent.

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In 2013 a company pays 5 percent interest on a bond that has a value of $250,000. The company's marginal tax rate is 39 percent. What is the present value of interest tax shields assuming the bond is perpetual. Select one: a. $97,500 b. $12,500 c. $4,875 d. $32,051

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