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PMF , Inc., can deduct interest expenses next year up to 3 0 % of EBIT. This limit is equally likely to be $ 1

PMF, Inc., can deduct interest expenses next year up to30% of EBIT. This limit is equally likely to be $ 14$14million, $ 23$23million, or $ 32$32 million. Its corporate tax rate is 30%30%, and investors pay a 15%15% tax rate on income from equity and a 35%35% tax rate on interest income. a. What is the effective tax advantage of debt if PMF has interest expenses of $1111 million this coming year? b. What is the effective tax advantage of debt for interest expenses in excess of $ 32$32million?(Ignore carryforwards). c. What is the expected effective tax advantage of debt for interest expenses between $ 14$14 million and $ 23$23million?(Ignore carryforwards). d. What

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