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With its current leverage, Impi Corporation will have net income next year of $9.5 million. If Impis corporate tax rate is 30% and it pays

With its current leverage, Impi Corporation will have net income next year of $9.5 million. If Impis corporate tax rate is 30% and it pays 8% interest on its debt, how much additional debt can Impi issue this year and still receive the benefit of the interest tax shield next year?

A.$122.22 million

B.$123.11 million

C.$201.10 million

D.$169.64 million

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