Question computing interest tax savings dharma supply has, Ask an Expert

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Question: (Computing interest tax savings) Dharma Supply has earnings before interest and taxes? (EBIT) of 520,000,interest expenses of 259,000 and faces a corporate tax rate of 36% percent.

a. What is Dharma Supply's net income?

b. What would Dharma's net income be if it didn't have any debt? (and consequently no interest? expense)?

c. What are the firm's interest tax savings?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92797593

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