What is the value of the interest rate tax shield

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A company has a wacc equal to 15.00%, a constant and perpetual expected EBITDA equal to 3,100,000 Euro, an unlevered return on equity of 22.53% and it keeps a constant debt-to-equity ratio. If the tax rate is equal to 25% and the assets are fully depreciated, what is the value of the interest rate tax shield?

Reference no: EM13725114

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