Question regarding the interest tax shield
Problem:
Fluery Co. ha a 38 percent tax rate. Its total interest payment for the year just ended was $32 million.
Required:
Question 1: What is the interest tax shield?
Question 2: How do you interpret this amount?
Note: Show all workings.
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Question 1: What is the interest tax shield? Question 2: How do you interpret this amount?
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