Southern Belle, Inc., a software engineering firm, is considering adding debt to their capital structure. Currently, the value of Southern Belle is $$12,500,000$ and they are all$-$equity financed. The CFO would like to issue debt; specifically, $$6,000,000$ worth of bonds. This debt is permanent. The interest on the bonds would be set at $8\%.$ The CFO estimated that this is the appropriate required rate of return demanded by bondholders of similar debt issues. Southern Belle pays taxes at a rate of $22\%.$

a$)$ What is the annual interest tax shield given the proposed debt issuance?

b$)$ What is the present value of the interest tax shield?

c$)$ Given your answer in part b$,$ what is the value of the firm with the debt?

d$)$ If the debt matured in five years instead of being permanent, how would that change your estimate of the new firm value? This needs to be calculated.