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NeuroDyne Telemetrix ( NDT ) has an equity beta of 1 . 3 8 , a cost of debt of 7 . 2 5 %

NeuroDyne Telemetrix (NDT) has an equity beta of 1.38, a cost of debt of 7.25%, a debt ratio of 25%, and tax rate of 35%. The company's EBIT for 2023 was $381,331,000 and a similar figure is expected for 2024. How much debt would NDT need to issue in order to completely eliminate its tax liability? What are the limitations to this strategy? If NDT has $550 milliion bonds outstanding, what is the current value of its Interest Tax Shield?

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