Markum Enterprises is considering permanently adding an additional $ $139$ million of debt to its capital structure.$$ Markum's corporate tax rate is $27\%.$

a$.$ Absent personal$$ taxes, what is the value of the interest tax shield from the new$$ debt?

b$.$ If investors pay a tax rate of $37\%$ on interest$$ income, and a tax rate of $18\%$ on income from dividends and capital$$ gains, what is the value of the interest tax shield from the new$$ debt?

Question content area bottom

Part $1$

a$.$ Absent personal$$ taxes, what is the value of the interest tax shield from the new$$ debt?

In the absence of personal$$ taxes, the value of interest tax shield from new debt should be $$$

$$

$37\mathrm{.}53$ million. $($Round to two decimal$$ places.$)$

Part $2$

b$.$ If investors pay a tax rate of $37\%$ on interest$$ income, and a tax rate of $18\%$ on income from dividends and capital$$ gains, what is the value of the interest tax shield from the new$$ debt?

If investors pay a tax rate of $37\%$ on interest$$ income, and a tax rate of $18\%$ on income from dividends and capital$$ gains, the value of the interest tax shield from new debt should be $$$

$$

enter your response here million. $($Round to two decimal$$ places.$)$