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(Computing interest taxsavings) Dharma Supply has earnings before interest and taxes(EBIT) of $ 500,000 interest expenses of $ 300,000 and faces a corporate tax rate

(Computing interest taxsavings)Dharma Supply has earnings before interest and taxes(EBIT) of $500,000 interest expenses of $300,000 and faces a corporate tax rate of 35 percent.

a.What is DharmaSupply's netincome?

b.What wouldDharma's net income be if itdidn't have any debt(and consequently no interestexpense)?

c.What are thefirm's interest taxsavings?

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