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Capital Structure and Value Tax rate 30% Debt 380,000 Interest rate 6% No Debt Base Case 20% Decrease EBIT 104,000 83,200 Interest - - Earnings

Capital Structure and Value Tax rate 30% Debt 380,000 Interest rate 6% No Debt Base Case 20% Decrease EBIT 104,000 83,200 Interest - - Earnings before tax 104,000 83,200 Tax 31,200 24,960 Net income Percentage change in net income

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