Question: With its current leverage, Impi Corporation will have net income next year of $4.5 million. If Impis corporate tax rate is 35% and it pays

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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Net income is after tax So NI of 45 million means 451tc45m10356923m in taxab... View full answer

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