Full Screen Accessibility Analysts expect Blitz Briveries to generate 51:56 billion of free cash flow at the end of the current year, (Assume that cash flows occur on December 31 and today is January 1) Analysts expect Bit's free cash flow to grow at 2% in perpetuity Bitz has debt to-equity ratio of 50% and is committed to maintaining that ratio in perpetuity, Blitz's cost of debt is 5%. The current market value of Bitz's bonds is 58 billion. Botz has 1.6 bilion shares outstanding that trade for $10. Sudds Inc. a compening brewing company, has no debt and its shareholders require a return of 50% The tax rate is 30%, Bitr's shareholders require a return of 11% and the company's WACC is 8.5% What is the present value of the Bit's tax shields $1.298 $1.718 51.250 $1.50