Grommit engineering expects to have net income next year of, Ask an Expert

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Grommit Engineering expects to have net income next year of $47.33 million and free cash flow of $23.67 million.? Grommit's marginal corporate tax rate is 30%.

a. If Grommit increases leverage so that its interest expense rises by $6.1 million, how will net income? change?

b. For the same increase in interest? expense, how will free cash flow? change?

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Category:- Financial Management
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