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In recent years, Haverhill Corperation has averaged a net income of $10 million per year o

In recent years, Haverhill Corperation has averaged a net income of $10 million per year o

In recent years, Haverhill Corperation has averaged a net income of $10 million per year on net sales of $100 million per year. It currently has no-long term debt, but is considering a debt issue of $5 million. The interest rate on the debt woyuld be 6 percent. Haverhill currently faces an effective tax rate of 35 percent. What would Haverhill's annual interest tax shield if it goes throug with the debt insurence?

Abhinav 03-Dec-2019

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