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A firm has EBIT of $500,000, interest expenses of $300,000, and a cooperate tax rate of 35%. What is its net income? What would its
A firm has EBIT of $500,000, interest expenses of $300,000, and a cooperate tax rate of 35%.
- What is its net income?
- What would its net income be if it did not have any debt (and, consequently, no interest expense)?
- What are the firms interest tax savings?
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