Use the following information to answer the questions below Consider the following income statement for ABC Inc. (all figures in $ Million) 2006 2005 2004 Total Sales 60,553 56,434 53,791 Cost of goods sold 45,565 42,140 39,637 Selling, general & admin expenses 11,688 12,191 11,575 Depreciation 1265 1256 1209 Operating Income 2035 847 1370 Other Income 0 0 0 EBIT 2035 847 1370 Interest expense 510 557 604 Earnings before tax 1525 290 766 Taxes (35%) 534 102 268 Net Income 991 189 498 (a) (2 marks) What is the interest tax shield for ABC Inc. in 2006, 2005 and 2004? (b) (2 marks) What is the total amount available to payout to all the investors in ABC Inc for 2006, 2005 and 2004? (c) (2 marks) What is the total amount available to payout to shareholders in ABC Inc if there were no leverage for 2006, 2005 and 2004?

ANSWER for part C?