What is the interest tax shield

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MicroAzy Co. currently has debt outstanding of 360 million and an interest rate of 5%. Data Co. plans to reduce its debt by repaying $90 million in principle at the end of each year for the next four years. If MicroAzy’s marginal corporate tax rate is 20%, what is the interest tax shield from MicroAzy Co.’s debt in each of the next four years? (Show your calculations).

Reference no: EM131979086

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