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Your firm currently has $ 80 million in debt outstanding with a 8 %. interest rate. The terms of the loan require the firm to

Your firm currently has $ 80 million in debt outstanding with a 8 %. interest rate. The terms of the loan require the firm to repay $ 20 million of the balance each year. Suppose that the marginal corporate tax rate is 35 % , and that the interest tax shields have the same risk as the loan. What is the present value of the interest tax shields from thisdebt?

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