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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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