QUESTIONS Question 2(20 Points): a) Assume the corporate tax rate is 30%. The firm has no debt in its capital structure. It is valued at $100 million. If this firm permanently borrows $150 million at an interest rate of 10%; a) What is the present value of the interest tax shield? What would be the value of this firm with this $150 perpetual debt? b) What would be the present value of the interest tax shield if the debt is taken only for two years? And the value of the firm? Compare the two cases. Plearn at the