Question: Cindy Bakery has $ 5 7 8 , 0 0 0 of debt outstanding that is selling at par and has a coupon rate of

Cindy Bakery has $578,000 of debt outstanding that is selling at par and has a coupon rate of 8 percent. The tax rate is 21 percent. What is the present value of the tax shield?
Group of answer choices
$121,380
$63,940
$9,710
$46,240

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