Solution-What will be the company''s interest tax shield

What will be the company''s interest tax shield

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A company has net income of $20,000 and a tax rate of 35 percent. Its total debt is $25,000, with principal payments of $5,000 due at the end of each year and an annual interest rate of 8%. What will be the company's interest tax shield in the upcoming year? Please show your work.

Reference no: EM13929315

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What will be the company''s interest tax shield : A company has net income of $20,000 and a tax rate of 35 percent. Its total debt is $25,000, with principal payments of $5,000 due at the end of each year and an annual interest rate of 8%. What will be the company's interest tax shield in the upcomi..

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What will be the company''s interest tax shield

Reference no: EM13929315

Reference no: EM13929315

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