Question: You are borrowing $ 1 , 0 0 0 , 0 0 0 at a rate of 5 % annual interest. You have a tax

You are borrowing $1,000,000 at a rate of 5% annual interest. You have a tax rate of 30%. What is the tax shield you will earn on this debt?
Group of answer choices
$50,000
$15,000
$35,000
3.5%

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