Question
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?
Step by Step Solution
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Step: 1
The interest tax shield is the reduction in taxable income resulting from the deduction of interest ...
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
