What maxwell tax shield is

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Reference no: EM132988417

Maxwell's annual financial statements show operating profit before interest and tax of $415,386 thousand, net income of $254,418 thousand, provision for income taxes of $73,016 thousand and net nonoperating expense before tax of $87,593 thousand.

Problem 1: Assume Maxwell's statutory tax rate for the year is 37%. Maxwell's tax shield is:

Option 1: $27,016 thousand
Option 2: $236,738 thousand
Option 3: $73,016 thousand
Option 4: $32,409 thousand
Option 5: None of these are correct.

Reference no: EM132988417

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