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Suppose a firm has $50 million of permanent debt. If the tax rate is 25% and the cost of debt is 7%, what is the

Suppose a firm has $50 million of permanent debt. If the tax rate is 25% and the cost of debt is 7%, what is the value of the interest tax shield each year? $0.875 million $50 million $3.5 million $12.5 million

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