What is the value of the tax benefit if a company's debt is 400,000, EBIT is 600,000,

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What is the value of the tax benefit if a company's debt is 400,000, EBIT is 600,000, tax rate is 30%, dividends are 10,000, and the interest rate on the debt is 10%?

a.12000

b.40000

c.168000

d.10000

Related Book For answer-question

Valuation The Art and Science of Corporate Investment Decisions

ISBN: 978-0133479522

3rd edition

Authors: Sheridan Titman, John D. Martin

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Posted Date: Dec 27, 2022 03:27 AM

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What is the value of the tax benefit if a company's debt is 400,000, EBIT is 600,000,

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Valuation The Art and Science of Corporate Investment Decisions

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