What are the firms interest tax savings-supply net income

Assignment Help Financial Management
Reference no: EM13846981

Dharma Supply has earnings before interest and taxes (EBIT) of $527000, interest expenses of $334000 bad faces a corporate tax rate of 35 percent.

a. What is Dharma Supply's Net Income?

b. what would dharma’s net income be if it didn’t have any debt?

 

c. what are the firms interest tax savings?

Reference no: EM13846981

Questions Cloud

Identify the negative side effects of punishment : Identify the negative side effects of punishment and also the characteristics of effective punishment. No more than 200 words please
A class in alcohol drug abuse & social behavior : A class in Alcohol, Drug Abuse & Social Behavior. I need assistance  in writing a paper on a personal reaction or response from attending an AA meeting. Paper has to be in APA format and 1-1/2 in page length. No reference needed. No plagiarism! Paper..
What was the action in the case alberty v. corporacion de pu : What was the action in the case Alberty v. Corporacion de Puerto Rico
Create a spiritual and psychological inventory : In a 4-5 page paper, create a spiritual and psychological inventory that can be used to determine a current state of wellness. The inventory should be a list of at least 10 well thought out questions that can be asked to best help someone understand ..
What are the firms interest tax savings-supply net income : Dharma Supply has earnings before interest and taxes (EBIT) of $527000, interest expenses of $334000 bad faces a corporate tax rate of 35 percent. What is Dharma Supply's Net Income? what would dharma’s net income be if it didn’t have any debt? what ..
How would you incorporate some of the factors of diversity : If someone were to ask you, "What are you?", what would your reply be and how would you incorporate some of the factors of diversity into your response? Discuss how race, ethnicity, gender, social class, religion, and sexual orientation have influenc..
How much will your account be worth at the end of 25 years : You deposit $500 today in a savings account that pays 3.5% interest, compounded annually. How much will your account be worth at the end of 25 years?
Search or find an academic or scholarly article : Search or Find an academic or scholarly article about one of the following concepts. Here is a list of possible topics. example: Memory, Recall, Schemas, Forgetting, Thinking, Heuristic, Language, and Reasoning.
The purpose of the audit to exert cybernetic contro : the purpose of the audit to exert cybernetic contro

Reviews

Write a Review

Financial Management Questions & Answers

  How much principal is amortized with the first payment

$70,000 is borrowed, to be repaid in three equal, annual payments with 12% interest. Approximately how much principal is amortized with the first payment?

  Nominal annual cost of trade credit

A firm purchases materials on terms of 3/15, net 40 and it can borrow the funds from a bank at an APR of 30%. Should the firm use the bank loan by taking the discount or the full credit period by giving up the discount? Show your work including nomin..

  Annum with semi-annual compounding

The six month and one-year rates are 3% and 4% per annum with semi-annual compounding. Is 3.90% or 3.95% or 3.99% closest to the one-year par yield expressed with semi-annual compounding?

  The bonds make annual payments

Lycan, Inc., has 8.2 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments.

  Zero-coupon bond is trading

Suppose that there are two securities RAIN and SUN. RAIN pays $100 in there is any rain during the next world cup soccer final. SUN pays $100 in there is no rain. Suppose that the world cup soccer final is 1 year from today (although this is not true..

  Find the yield to maturity and current yield

Today is a day in May 2525 and a bond with an coupon rate of 8.0% just yesterday paid a coupon. The bond matures in November 2540 and its quoted bond price is 118.03 percent of par (semiannual compounding). Find the yield to maturity (YTM) and curren..

  Zero correlated assets reduce risk more than negatively

In response to the same external forces, the return on one investment may increase while the return on another investment may decrease. Zero correlated assets reduce risk more than negatively correlated assets. Risk can be defined as uncertainty conc..

  Explain site analysis performed by a consulting firm

The site analysis performed by a consulting firm (at a cost of $50,000 to General Food) shows that the land is suitable for the plant. The plant will cost $5.5 million to build.

  New mortgage has quoted interest rate

Steve and Laurie bought a house in Edmonton exactly 5 years ago. They took out a mortgage for $400,000 at that time. The mortgage had a 25-year amortization period, monthly mortgage payments, and a quoted interest rate of 8% (APR, semi-annually compo..

  What was last years dividend per share

After a 5-for-1 stock split, Strasburg Company paid a dividend of $1.45 per new share, which represents a 12% increase over last year's pre-split dividend. What was last year's dividend per share?

  Difficult to estimate amount of possible future contingency

Many firms believe that it is very difficult to estimate the amount of a possible future contingency. Should a contingent liability be reported even when the dollar amount of the loss is not known? Should it be disclosed in the notes to financial sta..

  Compute the expected balance in accounts receivable

Prepare a schedule of cash collections for May through July and compute the expected balance in Accounts Receivable as of July 31.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd