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Without leverage, Impi Corporation will have net income next year of $ 8 . 5 million. If Impi's corporate tax rate is 2 1 %
Without leverage, Impi Corporation will have net income next year of $ million. If Impi's corporate tax rate is and it pays 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 $million and that interest tax deductions are limited to of EBIT under the TCJA.
The debt is $ enter your response here million. Round to three decimal places.
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