In recent years, Haverhill Corporation has averaged a net income
of $10 million per year on net sales of $100 million per year. It
cur-rently has no long-term debt, but is considering a debt issue
of $5million. The interest rate on the debt would be 6 percent.
Haverhillcurrently faces an effective tax rate of 35 percent. What
would beHaverhill’s annual interest tax shield if it goes through
with the debt issuance?
In recent years, Haverhill Corporation has averaged a net income of $10 million per year on net sales of $100 million pe
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am