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Find what is the present value of the interest tax shield

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Reference no: EM132770276

Problem 1: If a firm borrows permanently $20 Million at an interest rate of 8%, what is the present value of the interest tax shield? If a firm borrows $20 Million for one year at an interest rate of 7%, what is the present value of the interest tax shield? (Assume the corporate tax rate Tc = 0.35)

Reference no: EM132770276

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