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Company A is planning to acquire Company B. Company A is expected to have Income before taxes for next six years close to $100,000 each
Company A is planning to acquire Company B. Company A is expected to have Income before taxes for next six years close to $100,000 each year. Company B in its last three years has accumulated a loss of around $750,000 around $250,000 each year. Tax rate for company A is 35%. But it has to take debt to outright buy company B. Please calculate:
- Tax saving for next five years
- If debt rate is 2%, how much debt company A can have to be paid it in full next five years with savings from acquisition.
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