Question: Please show all equations and work as needed. If possible enter the work as text. Also make the answer clear. Thank you. Assume that Microsoft

Please show all equations and work as needed. If possible enter the work as text. Also make the answer clear. Thank you.

Assume that Microsoft has a total market value of $303.5 billion and a marginal tax rate of 35%. If it permanently changes its leverage from no debt by taking on new debt in the amount of 12.9% of its current market value, what is the present value of the tax shield it will create? $900 million O $13.70 billion O $11.08 billion $4.84 billion

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