Question: Problem 2, [6 pts] Carrefour S.A. Corporation will have net income next year of $120.00 million. If Carrefour SA. corporate tax is 35% and it

Problem 2, [6 pts] Carrefour S.A. Corporation will have net income

Problem 2, [6 pts] Carrefour S.A. Corporation will have net income next year of $120.00 million. If Carrefour SA. corporate tax is 35% and it pays 8% interest on its debt, how much additional debt can Carrefour issue this vear and still receive the benefit of the interest tax shield next vear (to maximize the Tax Shield)? (Show your calculations)

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