Problem:
Dharma Supply has earnings before interest and taxes (EBIT) of $590000, interest expenses of $321000 abd faces a corporate tax rate of 35 percent.
Required:
Question 1: What is Dharma Supply's Net Income?
Question 2: What would dharmas net income be if it didnt have any debt?
Question 3: What are the firms interest tax savings?
Note: Please show how you came up with the solution.