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Question: Your firm currently has $116 million in debt outstanding with an 8% interest rate. The terms of the loan require it to repay $29

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Your firm currently has $116 million in debt outstanding with an 8% interest rate. The terms of the loan require it to repay $29 million of the balance each year. Suppose the marginal corporate tax rate is 30%, 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?

Please proper explain and do not copy from Chegg. Otherwise, I have to report the answer.

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