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Please help me solve I will leave a thumbs up!! Assume that Microsoft has a total market value of $296 billion and a marginal tax
Please help me solve I will leave a thumbs up!!
Assume that Microsoft has a total market value of $296 billion and a marginal tax rate of 35%. If it permanently changes its leverage from no debt by taking on new debt in the amount of 12.6% of its current market value, what is the present value of the tax shield it will create? The present value of the tax shield is $billion. (Round to two decimal places.) Step by Step Solution
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