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Suppose firm XYZ borrows 60 million for one year at an interest rate of 7 percent, what is the present value of the interest tax
Suppose firm XYZ borrows 60 million for one year at an interest rate of 7 percent, what is the present value of the interest tax shield? Assume a 21 percent marginal corporate tax rate.
options:
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a)12.6 million
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b)17.50 million
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c)1.04 million
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d)0.82 million
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