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Grommit Engineering expects to have net income next year of $18.53 million and free cash flow of $9.27 million. Grommit's marginal corporate tax rate is
Grommit Engineering expects to have net income next year of $18.53 million and free cash flow of $9.27 million. Grommit's marginal corporate tax rate is 30%. a. If Grommit increases leverage so that its interest expense rises by $4.2 million, how will net income change? b. For the same increase in interest expense, how will free cash flow change
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