What is the interest tax shield

Assignment Help Financial Management

Reference no: EM131926472

Incite Co. has a 34 percent tax rate. Its total interest payment for the year just ended was $37.4 million.

What is the interest tax shield?

(Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)

Interest tax shield $

Reference no: EM131926472

Questions Cloud

What will you be looking for in these earnings reports : How important do you think corporate earnings will be over the next few weeks given the November-December rise in the US stock market?

What is the resultant field intensity oat a point : Two charges of +12 nC and +18 nC are separated horizontally by 28 mm. What is the resultant field intensity oat a point located 20

What are incremental free cash flows associated : What are the incremental free cash flows associated with the new? machine? The free cash flow for year 0 will be ?$

What will be optimal upper cash limit : The trading cost per sale or purchase of marketable securities to be $300 per transaction. What will be its optimal upper cash limit?

What is the interest tax shield : Incite Co. has a 34 percent tax rate. Its total interest payment for the year just ended was $37.4 million.

Second paper clip without the kitchen magnet help : The paper clip is already magnetized and can pick up a second paper clip without the kitchen magnet's help.

Calculate the net present value of project : Calculate the net present value of this project if the firm employs a real discount rate of 6.5% after inflation.

The difference between a retailing firm and manufacturer : Briefly describe the difference between a retailing firm and manufacturer's disclosure of inventories on the balance sheet.

What would be the project irr using above data : Using an opportunity cost of capital of 12%, what is the Net Present Value? What would be the project IRR using the above data?

User Account

All Pages