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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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