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Ten years have passed since Arnell issued $15 million in perpetual interest only debt with a 8% annual coupon. Tax rates have remained the same

Ten years have passed since Arnell issued $15 million in perpetual interest only debt with a 8% annual coupon. Tax rates have remained the same at 21% but interest rates have dropped, so Arnell's current cost of debt capital is 3%.

a. What is Arnell's annual interest tax shield?

b. What is the present value of the interest tax shield today

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