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Your firm currently has $76 million in debt outstanding with a 9% interest rate. The terms of the loan require it to repay $19 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?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92419182

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