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Present value of the interest tax shields

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Your firm currently has $ 52 million in debt outstanding with a nbsp 7 % interest rate. The terms of the loan require it to repay $13 million of the balance each year. Suppose the marginal corporate tax rate is 30 %?, 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?

The present value of the interest tax shields is $______ million (Round to two decimal places)

Reference no: EM131472975

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