Question: Firm A borrowed a 4 year , nonamortizing loan at a cost of 6%. Firm paid total flotation cost of $9,000 at the time of

Firm A borrowed a 4 year , nonamortizing loan at a cost of 6%. Firm paid total flotation cost of $9,000 at the time of borrowing. The flotation cost will be amortized over 4 year .

Corporate tax rate is 36% .

What is the annual flotation cost tax shield?

( DO NOT round intermediate steps, round your final answers into ONE decimal only, for example : 1.2)

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