Tax break can be expected as result of interest payment

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Company B borrowed $600 for 7 years with a cost of debt of 8%. Loan repayment terms require Company B to pay interest annually in each of the next 7 years starting next year, and pay the principal amount at the end of the 7th year. The firm’s tax rate is 35%. What annual tax break can be expected as a result of the interest payment.

Reference no: EM131828995

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