Tatum Co. has a 22 percent tax rate. Its total interest payment for the year just...

Question

Question

Tatum Co. has a 22 percent tax rate. Its total interest payment for the year just ended was $23.9 million. What is the interest tax shield?

business finance

Answer 1

Answer #1

Tax shield is reduced the tax liability of firm. Tax Shield = Tax Shield = Tax Shield = Interest expenses * Rate of Tax. $ 23

Answer 2

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