Question
Darwin's firm has $3 million in debt, and the firm pays 12% of interest. Assume the tax rate is 21%, what is the amount of
Darwin's firm has $3 million in debt, and the firm pays 12% of interest. Assume the tax rate is 21%, what is the amount of the annual interest tax shield?
$234,000
$75,600
$550,000
$260,000
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
