PLASI Corporation has a reported EBIT of $500, which is expected to remain constant in perpetuity. If the firm borrows $2,000, its YTM will be 6.5% and its coupon rate will be 8%. If the company's marginal tax rate is 30% and its average tax rate is 20%, what are its after-tax earnings?

Answer rating: 100% (QA)

I To find PLASI Corporations aftertax earnings we first need to calculate its interest expense and t... View the full answer