Markum Enterprises is considering permanently adding an additional $157 million of debt to its capital structure.Markum's corporate tax rate is 38%.

a. Absent personaltaxes, what is the value of the interest tax shield from the newdebt?

b. If investors pay a tax rate of 30% on interestincome, and a tax rate of 25% on income from dividends and capitalgains, what is the value of the interest tax shield from the newdebt?

a. Absent personaltaxes, what is the value of the interest tax shield from the newdebt?

In the absence of personaltaxes, the value of interest tax shield from new debt should be $

nothing

million. (Round to two decimalplaces.)