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Your firm currently has $116 million in debt outstanding with a 9% interest rate. The terms of the loan require the firm to repay $29 million of the balance each year. Suppose that the marginal corporate tax rate is 35 %, 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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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93048892

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