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• Good luck! 1 pts Question 1 D. L. Tuckers has $21.000 of debt outstanding that is selling at par and has a coupon rate of 7
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Answer #1

Answer is $6,720.00

Value of Debt = $21,000
Tax Rate = 32%

Present Value of Tax Shield = Value of Debt * Tax Rate
Present Value of Tax Shield = $21,000 * 0.32
Present Value of Tax Shield = $6,720

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