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Receive the benefit of the interest tax shield

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With its current leverage, COWCOW copr will have net income next year of $7 million. If COWCOWs corporate tax rate is 30% and it pays 7% interest on its debt, how much debt can COWCOW issue this year and still receive the benefit of the interest tax shield next year?

The debt is $___ million. (Round to three decimal? places.))

Reference no: EM132142267

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