Louis Incorporated Has EBIT of $500,000 for the Current Year

Louis Incorporated has EBIT of $500,000 for the current year.The firm has $250,500 of debt outstanding with a coupon rate of 12 percent.Investors require a return of 18 percent on the firm,and the firm has a corporate tax rate of 40%.What is the present value of the firm's tax shields?

A) $ 30,060
B) $100,200
C) $200,000
D) $ 45,090