Ruiz Corporation is an unlevered Timber company with assnts of $4.50 milion. Ruiz reports eamings before interest and tax of $2.55 million. In order to save on taxns, the CFO has suggested that the firm issue debt and use the proceeds to retire shares of stock. If conducted, the capital structure change would result in $1.20 mition of new debt with an annusi interest expense of 15 peroent a. How much will Rulz save in taxes, per year, as a rosult of the decision to issue debr? Use a corporatp tax rato of 30 peroent miBion Place your answer in millions with at least two decimal places, that is, if your answer is three quartens of a million dolars you shouid answer 0.75 b. Suppose Instead that the debt is permanent, meaning that the same amount of debt will stay on the books year aeryear orever Under this scenaro determine the how much n value the permanent debt tax shields provide? Arswer$ million Place your answer in millions with at least two decimal places, that is if your answer is three quarters of a milion dollars you shouid answer 0.7