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Business, 06.09.2020 02:01 ronnie7898

Your firm currently has $80 million in debt outstanding with a 9% interest rate. The terms of the loan require the firm to repay $20 million of the balance each year. Suppose that the marginal corporate tax rate is 21%, ,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?

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