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- ABC had EBIT of $705 million in 2018. In addition, it had interest expenses of $200 million and a corporate tax rate of 20%.
- ABC had EBIT of $705 million in 2018. In addition, it had interest expenses of $200 million and a corporate tax rate of 20%. - a. What was ABC's 2018 net income? - b. What was the total of ABC's 2018 net income and interest payments? - c. If ABC was unlevered, what would its 2018 net income have been? - d. What was the amount of ABC's interest tax shield in 2018
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