Tax Shields. You live in a world without transaction or information costs and with a fixed real investment policy (all positive NPV projects are undertaken regardless of the firms capital structure). Unfortunately, the government is still around to tax you. Your RV rental firm is deciding between raising $10 million via common stock or $10 million via a twenty-year coupon bond with a face value of $10 million. The coupon rate on the bond would be 10% and the corporate tax rate is 35%. What is the present value of the tax shield generated by issuing the bond instead of common stock?