How much debt can impi issue

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Reference no: EM131964475

Question: With its current leverage, Impi Corporation will have net income next year of $ 5.5$5.5 million. If Impi's corporate tax rate is 38 % and it pays 10 % interest on its debt, how much debt can Impi issue this year and still receive the benefit of the interest tax shield next? year?

Reference no: EM131964475

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