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Posted on Aug 03, 2024

Orange, Inc. is considering borrowing $ 1 0 0 , 0 0 0 at 5 % . Its tax rate is 3 5 % .

Orange, Inc. is considering borrowing $

100, 000

5 % .

Its tax rate is

35 % .

What is the present value of the interest tax shield if the debt is permanent?

(

do not use the $ sign when entering your answer

) .

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