Your all equity firm has a price per share of $18 and has 7M shares outstanding. Suppose the firm issue $12M worth of debt. The debt has a face value of $12M, a coupon rate of 7 percent, and 8 years until maturity. The expected return on the debt is 7 percent. Assume a corporate tax rate of 35%. What is the value of tax shield for issuing this debt? 1.76M4.20M2.06M QUESTION 28 Your all equity firm has a price per share of $18 and has 7M shares outstanding. Suppose the firm issue $12M worth of debt. The debt has a face value of $12M, a coupon rate of 7 percent, and 8 years until maturity. The expected return on the debt is 7 percent. Assume a corporate tax rate of 35%. What is the new share price after issuing this debt? 18.2518.6018.00