Recovery center for mountain dew addicts

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Reference no: EM132185162

Whispering Pines, a recovery center for Mountain Dew addicts, has a perpetual level of debt of $50 million and an equal amount of equity. Assuming the firm has a rate of debt of 7.5% and the corporate tax rate is 30%, what is the value (today) of the tax shield provided by Whispering Pines' debt?

Reference no: EM132185162

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