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Your firm currently has $ 52 million in debt outstanding with a 10 % interest rate....

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Finance

Your firm currently has $ 52 million in debt outstanding with a10 % interest rate. The terms of the loan require it to repay $ 13million of the balance each year. Suppose the marginal corporatetax rate is 30 %?and that the interest tax shields have the samerisk as the loan. What is the present value of the interest taxshields from this? debt? The present value of the interest taxshields is million.???(Round to two decimal? places.)

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Solution The present value of the interest    See Answer
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Your firm currently has $ 52 million in debt outstanding with a10 % interest rate. The terms of the loan require it to repay $ 13million of the balance each year. Suppose the marginal corporatetax rate is 30 %?and that the interest tax shields have the samerisk as the loan. What is the present value of the interest taxshields from this? debt? The present value of the interest taxshields is million.???(Round to two decimal? places.)

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