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Suppose DFB does not have any debt now. DFB start to restructure its existing debt, and will instead pay $ 3 0 million in interest

Suppose DFB does not have any debt now. DFB start to restructure its existing debt, and will instead

pay $ $30$ million in interest each year for the next $10$ years. These payments are risk free, and DFB $'$ s

marginal tax rate will remain $25 %$ throughout this period. If the risk $-$ free interest rate is $6 %,$ by how much

does the interest tax shield increase the value of DFB $? |$

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