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Grommit Engineering expects to have net income next year of $ 2 1 . 0 4 million and free cash flow of $ 1 0

Grommit Engineering expects to have net income next year of $21.04 million and free cash flow of $10.52 million. Grommit's marginal corporate tax rate is 30%.
a. If Grommit increases leverage so that its interest expense rises by $7.1million, how will net income change?
b. For the same increase in interest expense, how will free cash flow change?

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