Problemdharma supply has earnings before interest and taxes, Ask an Expert

Finance

Problem:

Dharma Supply has earnings before interest and taxes (EBIT) of $524000, interest expenses of $325000 abd faces a corporate tax rate of 36 percent.

Required:

Question 1: What is Dharma Supply's Net Income?

Question 2: What would dharmas net income be if it didnt have any debt?

Question 3: What are the firms interest tax savings?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163457

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