What is the pv of the debt tax shield

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Reference no: EM132630922

Problem 1: If a company issues 52,500 rupees worth of debt and has a corporate tax rate of 35%, what is the PV of the debt tax shield?

Option 1: 52500

Option 2: 22425

Option 3: 18375

Option 4: 34125

Reference no: EM132630922

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