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Rappaport Industries has 4,250 perpetual bonds outstanding selling for $1,000 each. The tax rate is 34 percent. What is the present value of the interest

Rappaport Industries has 4,250 perpetual bonds outstanding selling for $1,000 each. The tax rate is 34 percent. What is the present value of the interest tax shield?

Multiple Choice

$1,445,000

$83,810

$88,145

$1,300,500

$246,500

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