If a firm has 74 million in debt 224 million in equity a
If a firm has $7.4 million in debt, $22.4 million in equity, a tax rate of 34%, and pays interest on debt, what is the firm's PV of the interest tax shields?
a. $2.516 million
b. $150,960
c. $444,000
d. $15 million
e. $456,960
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