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For a firm with EBIT of $10 million, paying $6 million per year in interest expense, a drop in the corporate tax rate from 35%

For a firm with EBIT of $10 million, paying $6 million per year in interest expense, a drop in the corporate tax rate from 35% to 21% will have what impact on their interest tax shield?

A) $0.84 million higher

B) $0.84 million lower

C) $0.56 million higher

D) $0.56 million lower

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