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The president of Marcus Inc. has come to the conclusion that shareholders would be better off if the company had equal proportions of debt and

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The president of Marcus Inc. has come to the conclusion that shareholders would be better off if the company had equal proportions of debt and equity. He therefore proposes to issue $7,500 of debt at an interest rate of 8%. What is tax savings each year? Assuming tax rate is 21%. 1575 126 1260 157.5

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