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NovaTech and TechTide are identical companies that operate in the same industry. The only difference between the two companies is that TechTide has borrowed $

NovaTech and TechTide are identical companies that operate in the same industry. The only difference between the two companies is that TechTide has borrowed $2 million, at an interest rate of 10%. Both companies have an operating profit of $1.2 million and face a corporate tax rate of 25%. Compared to NovaTech, how much tax does TechTide save due to the interest that they pay? Can you also solve this by using the finacial calculator?

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