Tax Shield Value (((((((( NO COST OF DEBT WAS PROVIDED))))))

Wilde Software Development has a 10% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 4% rate after Year 3. Wilde's tax rate is 25%.

	Year 1	Year 2	Year 3
Interest expenses	$90	$125	$165

1. What is the horizon value of the interest tax shield? Do not round intermediate calculations. Round your answer to the nearest cent.

   $ _____

2. What is the total value of the interest tax shield at Year 0? Do not round intermediate calculations. Round your answer to the nearest cent.

   $ _____