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How will net income? change for grommit engineering

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Reference no: EM132869088

Grommit Engineering expects to have net income next year of $24.51 million and free cash flow of $12.26 million.? Grommit's marginal corporate tax rate is 30%.

Question a. If Grommit increases leverage so that its interest expense rises by $5.8 ?million, how will net income? change?

Question b. For the same increase in interest? expense, how will free cash flow? change?

Reference no: EM132869088

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