Poto corporation has a net income of $20,000 and the tax rate of 35%. Its total debt is $25,000 with Principal Payments of $5000 due at the end of each year and an annual interest rate of 8%. What will be Poto Corporations’ interest tax shield in the upcoming year?

Answer rating: 100% (QA)

Companys tax shield in the upcoming year is 700 Explanation We know that ... View the full answer