Question
XYZ has Sale s= 4,000, COGS = 2,000, Depreciation = 400, Interest = 600. The tax rates are:10% for taxable income up to 500, 15%
XYZ has Sale s= 4,000, COGS = 2,000, Depreciation = 400, Interest = 600. The tax rates are:10% for taxable income up to 500, 15% for the next 500, and 20% for any taxable income above 1,000 1.What is XYZ's Interest Tax Shield (ITS)?A.90 B.120 C.85 D. none of the above
. What would be the ITS if depreciation is increased to 1,000?. What would be the ITS if depreciation is increased to 1,000?
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
