Question: Please answer this problem showing the calculation steps. Thank you 5. Your firm currently has $116 million in debt outstanding with a 9% interest rate.

Please answer this problem showing the calculation steps. Thank you 5.

Please answer this problem showing the calculation steps. Thank you

5. Your firm currently has $116 million in debt outstanding with a 9% interest rate. The terms of the loan require the firm repay $29 million of the balance each year. Suppose that the marginal corporate tax rate is 35%, and that the interest shields have the same risk as the loan. What is the present value of the interest tax shields from this debt? The present value of the interest tax shields is $ million. (Round to two decimal places.)

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