Assume that LoPine Ltd, a US-based company (which has a classical taxation system), borrows $10 million at an interest rate of 15% and uses the funds to repurchase shares worth $10 million. Further, assume that the company tax rate is 35%, the marginal income tax rate is 30% and the average tax rate on equity income is 12%. Calculate the net tax savings per year.

This question is multiple choice and the answer is 192,000 but I want to know how to get the answer