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16 September, 15:43

Incite co. has a 36 percent tax rate. its total interest payment for the year just ended was $35 million. what is the interest tax shield?

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  1. 16 September, 16:35
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    Tax shield is the saving in tax due to exemption of tax on interest expense = interest expense * tax rate = $35 million * 36% = $ 12.6 million
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