Suppose ABC Inc. has the following properties:

Constant Debt Level of $$20,000$

Marginal tax rate of $22\mathrm{.}00\%$

Long$-$term growth rate of $2\mathrm{.}00\%$

Cost of debt $4\mathrm{.}00\%$

What is the Value of the Tax Shield the cloUse the One$-$Shot Model to calculate the Firm's Bankruptcy Cost:

Probability of Bankruptcy: $28\%$

Fraction of the firm lost in the bankruptcy: $30\%$

Value of the unlevered firm: $100,000$

Value of the tax shield: $3,000$

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