Problem 16-17 Tax Shields (LO2) Establishment Industries borrows $700 million at an interest rate of 6.6%. Establishment will pay tax at an effective rate of 21%. What is the present value of interest tax shields if: a. It expects to maintain this debt level into the far future? (Enter your answer in millions of dollars rounded to 1 decimal place.) b. It expects to repay the debt at the end of 4 years? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to decimal places.) c. It expects to maintain a constant debt ratio once it borrows the $700 million and rAssets = 10%? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place.) a. Present value $ 147.0 million b. Present value : million C. Present value million Problem 16-17 Tax Shields (LO2) Establishment Industries borrows $700 million at an interest rate of 6.6%. Establishment will pay tax at an effective rate of 21%. What is the present value of interest tax shields if: a. It expects to maintain this debt level into the far future? (Enter your answer in millions of dollars rounded to 1 decimal place.) b. It expects to repay the debt at the end of 4 years? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to decimal places.) c. It expects to maintain a constant debt ratio once it borrows the $700 million and rAssets = 10%? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place.) a. Present value $ 147.0 million b. Present value : million C. Present value million