What is the value of the tax shield if the value of the firm is $5 mil – McqOptions

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1.	What is the value of the tax shield if the value of the firm is $5 million, its value if unlevered would be $4.78 million, and the present value of bankruptcy and agency costs is $360,000?
A.	$140,000
B.	$220,000
C.	$360,000
D.	$580,000
Answer» E.

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