Question: PLEASE WORK IN EXCEL AND SHOW FORMULAS Without leverage, Impi Corporation will have net income next year of $7.5 million. If Impi's corporate tax rate

PLEASE WORK IN EXCEL AND SHOW FORMULAS

Without leverage, Impi Corporation will have net income next year of $7.5 million. If Impi's corporate tax rate is 21% 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? (Note: Assume Impi's revenues exceed $24 million, and that interest tax deductions are limited to 30% of EBIT under the TCJA.)

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