Finding the present value of the tax shield

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Question: Assume that Microsoft has a total market value of $303.9 billion and a marginal tax rate of 35%. If it permanently changes its leverage from no debt by taking on new debt in the amount of 13.3% of its current market value, what is the present value of the tax shield it will create? The present value of the tax shield is $ billion.

Reference no: EM131937389

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