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Suppose ABC Company issues perpetual debt with a face and market value of $5,000 and a coupon rate of 12%. If the firm is subject

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Suppose ABC Company issues perpetual debt with a face and market value of $5,000 and a coupon rate of 12%. If the firm is subject to a 40% tax rate, what present value of the interest tax shield? $1,667 $4,000 $3,600 $2,000 $2,400

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