Your firm currently has 112 million in debt outstanding, Financial Management

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Your firm currently has 112 million in debt outstanding

Your firm currently has $112 million in debt outstanding with a 7% interest rate. The terms of the loan require the firm to repay $28 million of the balance each year. Suppose that 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: Your firm currently has 112 million in debt outstanding

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