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(Computing interst tax savings) Dharma Supply has earnings before interst and taxes (EBIT) of $556,000, interest expenses of $322,000 and faces a corporate tax rate

(Computing interst tax savings) Dharma Supply has earnings before interst and taxes (EBIT) of $556,000, interest expenses of $322,000 and faces a corporate tax rate of 36 percent. a. What is Dharma Supply's net income? b. What would Dharma's net income income be if it didn't have any debt (and consequently no intest expense)? c. What are the firm's inerest tax savings?

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