Your firm currently has

$88

million in debt outstanding with a

6%

interest rate. The terms of the loan require the firm to repay

$22

million of the balance each year. Suppose that the marginal corporate tax rate is

21%,

and that the interest tax shields have the same risk as the loan. What is the present value of the interest tax shields from this debt?

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Part 1

The present value of the interest tax shields is ____ Million (Round to 2 Decimal Places)