please help complete the table as well, thank you! 9. (10pts)...
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Finance
please help complete the table as well, thank you!
9. (10pts) Your firm currently has $100 million in debt outstanding with a 10% interest rate. The terms of the loan require the firm to repay $25 million of the balance each year. Suppose that the marginal corporate tax rate is 25%, and that the interest tax shields have the same risk as the loan. Assume that the loan balance at the end of the prior year determines the interest paid in a given year. What is the present value of the interest tax shields from this debt? Complete the following table to assist your calculations. Year 0 1 2 3 4 5 Debt 100 75 Interest 0 10 Tax Shield 0 PV

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