A firm currently has total debt equal to $89 millions of dollars. They are considering changing that to a total amount of debt of $114. If they implement this change, what would be the change in the present value of the tax shield? The firm's tax rate is 25%, while the interest on debt is 8%.

Enter your answer in millions of dollars, without decimals.

Answer rating: 100% (QA)

First calculate the present value of the tax shield for ... View the full answer