Consider this information for the next three questions: SuperSales currently has no debt, but it is thinking of taking out a loan. The below information compares the company as-is vs with-debt. Assume that SGA is the the company's only expense except for interest (if any) and tax. Item Super Sales without debt Super Sales With debt 0.0 1,000.0 Debt Principal Interest @ 7% 0.0 70.0 Tax rate 30% 30% Income Statement No debt With debt Revenue 500.0 500.0 325.0 SGA 325.0 0026 15 By how much will the company's EBT (earnings before tax) be reduced if it takes out the loan? Report this as a positive number. 0927 15 How much will the company's Net Income be reduced if it takes out the loan? Report this as a positive number. 028 15 1 What accounts for the difference in the reduction in Net Income vs the reduction in EBT? The tax shield effect The decreased tax rate. Mark to market accounting vs GAAP accounting The tax hammer effect The increased tax rate Accelerated depreciation of loans