What is the present value of the interest tax shields

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Question: Your firm currently has $104 million in debt outstanding with a 9% interest rate. The terms of the loan require the firm to repay $26 million of the balance each year. Suppose that 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: EM131975167

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