Final answer:
The question concerns the calculation of the present value of a tax shield for a specific debt with set parameters, but it cannot be answered precisely without knowing the discount rate or period for discounting.
Step-by-step explanation:
The present value of the tax shield for D. L. Tucker's debt can be calculated using the interest tax shield formula which is the debt amount times the coupon rate times the tax rate. For Tucker's debt, this calculation is $48,000 (amount of debt) × 6.75% (coupon rate) × 35% (tax rate). This gives us the annual tax shield, which we then need to discount to present value. However, to calculate the actual present value, we need the discount rate, which is not provided in the question. The formula for the annual tax shield without the present value is straightforward:
Tax Shield = Debt × Coupon Rate × Tax Rate
However, we cannot calculate the precise present value of tax shield without knowing the discount rate or the period over which we should discount the tax savings.