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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 to of EBIT. This limit is equally likely to be $ $million $ $million or $ $ million. Its corporate tax rate is and investors pay a tax rate on income from equity and a tax rate on interest income. a What is the effective tax advantage of debt if PMF has interest expenses of $ million this coming year? b What is the effective tax advantage of debt for interest expenses in excess of $ $millionIgnore carryforwards c What is the expected effective tax advantage of debt for interest expenses between $ $ million and $ $millionIgnore carryforwards d What
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