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Calculate the present value of all future tax shields

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Question: ABC Corp is expected to have free cash flows of $120 million at the end of the year that will grow at 1% in perpetuity. ABC's current WACC is 9.8% and its unlevered cost of capital is 13.7%. Given this information calculate the present value of all future tax shields for ABC corp. Express your result in $-millions and round to two decimals (do not include the $-symbol in your answer)

Reference no: EM132753568

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