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30 May, 03:30

Incite Co. has a 30 percent tax rate. Its total interest payment for the year just ended was $43.4 million. What is the interest tax shield? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e. g., 1,234,567. Round your answer to the nearest whole number, e. g., 32.) Interest tax shield $

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  1. 30 May, 04:21
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    Answer: $13,020,000

    Explanation:

    Given that,

    Tax rate = 30%

    Total interest payment for the year just ended = $43,400,000

    Interest Tax Shield = Tax rate * Total interest payment

    = 30% * $43,400,000

    = 0.30 * $43,400,000

    = $13,020,000

    Therefore, the interest tax shield is $13,020,000.
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