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  3. without? leverage, impi corporation will have net

Without? leverage, Impi Corporation will have net income next year of $ 8.0 million. If? Impi's...

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Finance

Without? leverage, Impi Corporation will have net income nextyear of $ 8.0 million. If? Impi's corporate tax rate is 21 % and itpays 9 % interest on its? debt, how much additional debt can Impiissue this year and still receive the benefit of the interest taxshield next? year? (Note: Assume? Impi's revenues exceed $ 24?million, and that interest tax deductions are limited to 30 % ofEBIT under the? TCJA.)

The debt is $____million.

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Use spreadsheet for the ease in computations    See Answer
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