Question
Given the following information, calculate the tax shield effect of a $15,000 loan. Interest Rate on Loan: 7% Tax Rate: 40% Sales: $50,000 Operating Profit
Given the following information, calculate the tax shield effect of a $15,000 loan.
Interest Rate on Loan: 7%
Tax Rate: 40%
Sales: $50,000
Operating Profit margin: 15%
P/E ratio: 9.0x
| $420 |
| 560 |
| $470 |
| $540 |
| $600
|
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
14th Edition
0135175216, 978-0135175217
