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Consider the following income statement for Kroger Inc. (all figures in $ Millions) Year 2006 2005 2004 Total Sales 60,553 56,434 53,791 Cost of Goods

Consider the following income statement for Kroger Inc. (all figures in $ Millions)

Year 2006 2005 2004
Total Sales 60,553 56,434 53,791
Cost of Goods Sold 45,565 42,140 39,637
Selling, General & Admin Expenses 11,688 12,191 11,575
Depreciation 1265 1256 1209
Operating Income 2035 847 1370
Other Income 0 0 0
EBIT 2035 847 1370
Interest Expense 510 557 604
Earnings Before Tax 1525 290 766
Taxes (35%) 534 102 268
Net Income 991 189 498
  1. The interest rate tax shield for Kroger in 2006 is:
  2. The interest rate taxe shield for Kroger in 2005 is:
  3. The income that would be available to equity holders in 2006 if Kroger was not levered is:

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