Question: Question Completion Status: QUESTION 8 8 points DBF borrows $5.738 by issuing 10 year bonds. ECB's cost of debt is 3.15, so it will need

 Question Completion Status: QUESTION 8 8 points DBF borrows $5.738 by

Question Completion Status: QUESTION 8 8 points DBF borrows $5.738 by issuing 10 year bonds. ECB's cost of debt is 3.15, so it will need to pay interest each year for the next 10 years, and then repay the principal $5.738 in year 10. ECB's marginal tax rate will remain 36.46% throughout this period. By how much does the interest tax shield increase the value of DBF NOTE: Provide your answers in Millions, EG. for 100M you must enter 100.0000, for 20M you must enter 20.000, etc

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