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Please answer asap Your firm currently has $124 million in debt outstanding with a 9% interest rate. The terms of the loan require it to
Please answer asap
Your firm currently has
$124
million in debt outstanding with a
9%
interest rate. The terms of the loan require it to repay
$31
million of the balance each year. Suppose the marginal corporate tax rate is
40%,
and that the interest tax shields have the same risk as the loan. What is the present value of the interest tax shields from this debt?
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