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Wyatt Oil issued $ 1 0 0 million in perpetual debt ( at par ) with an annual coupon of 7 % . Wyatt will

Wyatt Oil issued $100 million in perpetual debt (at par) with an annual coupon of 7%. Wyatt will pay interest only on this debt. Wyatt's corporate tax rate is expected to be 21% for the foreseeable future.
1. Calculate Wyatt's annual interest tax shield
2. Calculate the present value of Wyatt's annual interest tax shield

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