What is the present value of the tax shield for hero mining

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Reference no: EM132383005

Hero mining had EBIT of $5m. it has $50m of debt with a required return of 6%. the required return on assets in this industry is 12% and the corporate tax rate is 40%.

  1. What is the present value of the tax shield for hero mining?
  2. What is the total value of the firm?

Reference no: EM132383005

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