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Recal the HBS Case on Blaine Kitchenware Inc. that we discussed. One benefit of Bi taking on additional debt (.e., increasing its leverage) is debt

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Recal the HBS Case on Blaine Kitchenware Inc. that we discussed. One benefit of Bi taking on additional debt (.e., increasing its leverage) is debt tax shields Assume that I will borrow $1 million to finance its share repurchase, the quoted borrowing rate from the bank is 6%, the marginal tax rate is 40%. What is the present value of the debt tax shields assuming it is a perpetual debt? O A $800,000 OB. $1,000,000 OC. $60,000 D$400,000 OE $24,000

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