Question: Search Help Save &Exit Problem 16-17 Tax Shields (LO2) Establishment Industries borrow s $900 milion at an interest rate of 86% Establishment wil pay tax

 Search Help Save &Exit Problem 16-17 Tax Shields (LO2) Establishment Industries

Search Help Save &Exit Problem 16-17 Tax Shields (LO2) Establishment Industries borrow s $900 milion at an interest rate of 86% Establishment wil pay tax at an effect ve rate of 35%, what is the present value of interest tax shields 20 a it expects to maintain this debt level Into the far future? (Enter your answer in milions of dollars) b It expects to repay the deot at the end of 6 years? (Enter your answer in millons of dollars rounded to 2 decimal places c. It expects to maintain a constant debt ratio once R borows the $900 million and rAssets 10%6? (Do not round intermediate caliculations. Enter your answer in milions of doliars rounded to 1 decimal place) C Prev fs l Next 8 8 9

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