Symul Co. keeps a constant debt-to-equity ratio policy. The company has

an expected EBITDA that perpetually grows at a 2% annual rate. All the assets

are fully depreciated. At the moment the debt-to-equity ratio is 1

3 and the cost

of debt is 3.75%. The unlevered value of the rm is 13,759,800 and the unlevered

return on equity is 8.45%. If the tax rate is 29%, what is the present value of

the interest rate tax shield? [605,514.72]

The answer has to be 605,514.72