P16-15 (similar to) Question Help Size of tax shield. Air Seattle is looking to change its capital structure from an all-equity firm to a levered firm with 40% debt and 60% equity. Air Seattle's before-tax value was $5,000,000 as an all-equity firm. Determine the size of the tax shield with a corporate tax rate of 16%, 22%, 30%, and 46% if Air Seattle's capital structure is 40/60 debt to equity. What is the size of the tax shield with a corporate tax rate of 16%? $ (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. 2 parts remaining Clear All Check