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SuperCo currently has no debt, but it is thinking of taking out a loan. Consider this information comparing the company as-is vs with debt: Item
SuperCo currently has no debt, but it is thinking of taking out a loan. Consider this information comparing the company as-is vs with debt: Item SuperCo with No debt SuperCo With debt Debt Principal (Loan) 0.0 1.000.0 Interest @ 8% 0.0 80.0 Tax rate 35% 35% Income Statement No debt With debt Revenue 900.0 900.0 SGA 315.0 315.0 By how much will the company's Nl be reduced if it takes on the debt? Assume the company's only expense except for interest (if any) and tax is SGA. Represent your answer as a positive number, and round to zero decimal places
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