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Calculate the present value of all future tax shields

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Problem 1: ABC Corp is expected to have free cash flows of $61 million at the end of the year that will grow at 3% in perpetuity. ABC's current WACC is 11.3% and its unlevered cost of capital is 12%. Given this information calculate the present value of all future tax shields for ABC corp. Express the result in $-millions and round to two decimals

Reference no: EM132756036

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