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LCMS Industries has $70 million in debt outstanding. The firm will pay only interest on this debt (the debt is perpetual). LCMS' marginal tax rate

LCMS Industries has $70 million in debt outstanding. The firm will pay only interest on this debt (the debt is perpetual). LCMS' marginal tax rate is 35% and the firm

pays a rate of 8% interest on its debt. Assuming that the risk is the same as the loan, the present value of LCMS' interest tax shield is closest to:

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