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Present value of the interest tax shields from debt

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Your firm currently has $ 80 million in debt outstanding with a nbsp 6 % interest rate. The terms of the loan require it to repay $ 20 million of the balance each year. Suppose the marginal corporate tax rate is 35 %, 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?

Reference no: EM131493490

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