Question: Johnson Corp borrows $ 8 2 0 million at an interest rate of 7 . 8 % . Establishment will pay tax at an effective

Johnson Corp borrows $820 million at an interest rate of 7.8%. Establishment will pay tax at an effective rate of 21%. What is the present value of interest tax shields if:a. It expects to maintain this debt level into the far future? (Enter your answer in millions of dollars rounded to 1 decimal place.)b. It expects to repay the debt at the end of 4 years? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places.)c. It expects to maintain a constant debt ratio once it borrows the $820 million and Assets

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