Question 5 (2 points) Duffy was just hired as CEO of Dog Food Inc. (DFI), which has no debt on its balance sheet. He also forecasts that the firm is expected to pay $200 million/year in taxes and is expected to have a constant 20% corporate tax rate forever. Assuming no bankruptcy costs, but personal taxes of 30% on income from equity and 50% on income from interest, if Duffy were to issue $100 million in perpetual debt at 8%, what is the present value of the tax shield? A) - $12 million B) +$ 2 million C$10 million D) - $16 million E) $30 million