Calculate the terminal value of the tax shield given the


Calculate the terminal value of the tax shield given the following information. Assume we are calculating it for the next year (that is, assume there is no planning period, just a terminal value). The tax rate is 30%. Debt will be $109 million. Assume debt grows at the same annual rate as the firm which is 2%. The cost of debt is 9% while the cost of equity is 12%.

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Financial Management: Calculate the terminal value of the tax shield given the
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