Computing interest tax savings

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Reference no: EM131503174

(Computing interest tax savings)

Dharma Supply has earnings before interest and taxes (EBIT) of 520,000,interest expenses of 259,000 and faces a corporate tax rate of 36% percent.

a. What is Dharma Supply's net income?

b. What would Dharma's net income be if it didn't have any debt? (and consequently no interest expense)?

c. What are the firm's interest tax savings?

Reference no: EM131503174

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