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Assume that Nordic Consulting had an EBIT of325mn in 2019, interest expenses of125mn and a corporate tax rate of 40%. a) Determine Nordic Consulting's 2019

Assume that Nordic Consulting had an EBIT of325mn in 2019, interest expenses of125mn and a corporate tax rate of 40%.

a) Determine Nordic Consulting's 2019 net income!

b) Calculate the total of Nordic Consulting's 2019 net income and interest payments!

c) In case Nordic Consulting had no interest expenses, what would its 2019 net income be? How does it compare to your answer in b)?

d) Determine the amount of Nordic Consulting's interest tax shield in 2019!

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