question archive Without? leverage, Impi Corporation will have net income next year of $8
Without? leverage, Impi Corporation will have net income next year of $8
Subject:FinancePrice: Bought3
Without? leverage, Impi Corporation will have net income next year of $8.5 million. If? Impi's corporate tax rate is 21% and it pays 9% interest on its? debt, how much additional debt can Impi issue this year and still receive the benefit of the interest tax shield next? year? (Note: Assume? Impi's revenues exceed $26 ?million, and that interest tax deductions are limited to 30% of EBIT under the? TCJA.)
