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Problem:

Fluery Co. ha a 38 percent tax rate. Its total interest payment for the year just ended was $32 million.

Required:

Question 1: What is the interest tax shield?

Question 2: How do you interpret this amount?

Note: Show all workings.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91171370

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