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Present value of the tax shield

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Reference no: EM131472966

Assume that Microsoft has a total market value of $ 300.7 billion and a marginal tax rate of 35 %. If it permanently changes its leverage from no debt by taking on new debt in the amount of 12.7 % of its current market? value, what is the present value of the tax shield it will?create?

The present value of the tax shield is ?$________ billion (Round to two decimal places)

Reference no: EM131472966

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