What are the firms interest tax savings

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Reference no: EM131014517

Dharma Supply has earnings before interest and taxes(EBIT) of $552,000, interest expenses of $340,000, and faces a corporate tax rate of 34%.

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: EM131014517

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What are the firms interest tax savings : Dharma Supply has earnings before interest and taxes(EBIT) of $552,000, interest expenses of $340,000, and faces a corporate tax rate of 34%. What is Dharma Supply’s net income? What would Dharma’s net income be if it didn’t have any debt(and conseq..

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