Problem 16-17 Tax Shields (LO2) Establishment Industries borrows $840 million at an interest rate of 8.0%. 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 6 years? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places.) c. It expects to maintain a constant debt ratio once it borrows the $840 million and rAssets = 10%? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place.) a. Present value million b. Present value million C. Present value million Problem 16-17 Tax Shields (LO2) Establishment Industries borrows $840 million at an interest rate of 8.0%. 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 6 years? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places.) c. It expects to maintain a constant debt ratio once it borrows the $840 million and rAssets = 10%? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place.) a. Present value million b. Present value million C. Present value million