What is the firms pv of the interest tax shields

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Reference no: EM13868497

If a firm has $7.4 million in debt, $22.4 million in equity, a tax rate of 34%, and pays interest on debt, what is the firm's PV of the interest tax shields?

a. $2.516 million

b. $150,960

c. $444,000

d. $15 million

e. $456,960

Reference no: EM13868497

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