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Rappaport Industries has 5,500 perpetual bonds outstanding selling for $2,000 each. The tax rate is 22 percent. What is the present value of the interest

Rappaport Industries has 5,500 perpetual bonds outstanding selling for $2,000 each. The tax rate is 22 percent. What is the present value of the interest tax shield?

$715,000

$3,366,000

$243,100

$254,320

$2,420,000

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