If it permanently changes its leverage from no debt by


Assume that Microsoft has a total market value of $ 295.5 billion and a marginal tax rate of 35 %. If it permanently changes its leverage from no debt by taking on new debt in the amount of 13.4 % of its current market? value, what is the present value of the tax shield it will? create?

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Business Economics: If it permanently changes its leverage from no debt by
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