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Two Birds Industries has $20 million in permanent debt outstanding. The firm pays only interest on its debt. Two Bird's marginal tax rate is expected

Two Birds Industries has $20 million in permanent debt outstanding. The firm pays only interest on its debt. Two Bird's marginal tax rate is expected to be 30% for the foreseeable future.Suppose Two Bird's pays interest at 8% per year on its debt. What is the annual tax savings and the present value of the annual tax savings?


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