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A corporation has $50 billion of Earnings Before Interest and Taxes (EBIT) and $20 billion in interest expenses this year. How much interest expense can

A corporation has $50 billion of Earnings Before Interest and Taxes (EBIT) and $20 billion in interest expenses this year. How much interest expense can the com-pany deduct from its EBIT in the current year? What happens if the company cant deduct all of its interest expenses in the current year?

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