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Your firm currently has $ 104 million in debt outstanding with anbsp 7 % interest rate. The terms of the loan require it to repay $26 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.)

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Financial Management, Finance

Category:- Financial Management
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