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suppose a firm borrows $160m at a rate of 6.4% and the corporate rate is 25%. a. what is the tax shield from the use
suppose a firm borrows $160m at a rate of 6.4% and the corporate rate is 25%. a. what is the tax shield from the use of debt financing each year? b. what is the PV of the interest tax shield from the debt if the debt matures in 30 years? c. what is the PV of the tax shield if the debt is permanent?
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