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Consider the following income statement for the United Supermarket that is currently levered. Its EBIT in 2 0 2 0 is $ 4 0 0
Consider the following income statement for the United Supermarket that is currently levered. Its EBIT in is $ and interest expense is $but displayed as negative in the income statement to indicate that it is an expense The frm faces a tax rate of Assume that net income can be used to pay out to investors, the total amount avalable to payout to all the investors both equity holders and debf holders is SThe difference in dollars between the total amount avalable to all investors both equity holders and debt holders and the income that would be available to equity holders if the firm were not levered for the year is S That is what is minus Note that we assume the operating performance is unchanged so same EBIT if the firm were not levered ie financed with equity onlyInstruction: Type ONLY your numerical answer in the unit of dollars. NO $ sign. NO comma sign, and round it to the nearest integer. Eg if your answer is $ then just input
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