Problem $16-17$ Tax Shields $($LO$2)$

Establishment Industries borrows $$740$ million at an interest rate of $7\mathrm{.}0\%.$ 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?

Note: Enter your answer in millions of dollars rounded to $1$ decimal place.

b$.$ It expects to repay the debt at the end of $6$ years?

Note: 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 $$740$ million and $r_{\text{A}\text{s}\text{s}\text{c}\text{t}\text{s}}=10\%?$

Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to $1$ decimal place.

$\backslash$table$[[$a$.$ Present value,,million$],[$b$.$ Present value,,million$],[$c$.$ Present value,,million$]]$