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SETAL has an unlevered cost of equity equal to 1 2 % and a tax rate of 3 1 % . In years one, two,

SETAL has an unlevered cost of equity equal to 12% and a tax rate of 31%. In years one, two, and three, the expected interest expenses are $117, $239, and $353, respectively. After Year 3, the interest expenses are forecasted to increase at a constant 4% each year. What is the horizon value of the interest tax shield?

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