Question: With its current leverage Impi Corporation will have net income

With its current leverage, Impi Corporation will have net income next year of $4.5 million. If Impi’s corporate tax rate is 35% and it pays 8% interest on its debt, how much additional debt can Impi issue this year and still receive the benefit of the interest tax shield next year?


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  • CreatedAugust 06, 2014
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