Compute the present value of interest tax shields generated by these three debt issues. Consider cor 1 answer below »

Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes only. The marginal tax rate is Tc = 0.30.

   a.

A $2,500, one-year loan at 6%.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

     PV (tax shield) $

   b.

A five-year loan of $2,500 at 6%. Assume no principal is repaid until maturity. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

     PV (tax shield) $

   c. A $2,500 perpetuity at 5%.

     PV (tax shield) $

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