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What is the present value of the interest tax shield

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Reference no: EM132551223

Bay Transport Systems? (BTS) currently has $20 million in debt outstanding. In addition to 6.0% ?interest, it plans to repay 10% of the remaining balance each year. If BTS has a marginal corporate tax rate of 21%?, and if the interest tax shields have the same risk as the? loan, what is the present value of the interest tax shield from the? debt?

Reference no: EM132551223

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