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How increase the value of dbf

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DBF borrows $2.46B by issuing 20-year bonds. ECB's cost of debt is 5.48%, so it will need to pay interest each year for the next 20 years, and then repay the principal $2.46B in year 20. ECB's marginal tax rate will remain 38% throughout this period. By how much does the interest tax shield increase the value of DBF?

Reference no: EM132673370

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