Until now, Mammoth-Mart has had no debt. Mammoth-Mart is considering a plan to sell bonds worth $30B and use the proceeds to repurchase 1 shares (on the open market at $30/share). Assume that the debt is sold immediately, that the bonds are a perpetuity with annual coupons at a rate of 9%, and a yield of 7%. If Mammoth-Mart maintains this new level of debt in perpetuity, then what is the present value of the resulting interest tax shields? Assume the tax rate is 30% $8.0B | $7.88 $9.0B $8.50