What is the present value of the tax shield it will


Assume that Microsoft has a total market value of $303.9 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 13.3% of its current market value, what is the present value of the tax shield it will create?

The present value of the tax shield is $ billion.

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Financial Management: What is the present value of the tax shield it will
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