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Without leverage, Impi Corporation will have net income next year of $ 9.0 million. If Impi's corporate tax rate is 21 % and it pays
Without leverage, Impi Corporation will have net income next year of $ 9.0 million. If Impi's corporate tax rate is 21 % and it pays 10 % 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? (Note: Assume Impi's revenues exceed $ 25 million, and that interest tax deductions are limited to 30 % of EBIT under the TCJA.)
The debt is $ nothing million. (Round to three decimal places.)
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