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Reena Industries has $138,000 of debt outstanding that is selling at par and has a coupon rate of 7 percent. If the tax rate is

Reena Industries has $138,000 of debt outstanding that is selling at par and has a coupon rate of 7 percent. If the tax rate is 34 percent, what is the present value of the tax shield?

A)$28,412

B)$51,010

C)$46,920

D)$3,284

E)$9,660

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