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Fynjy0 [20]
3 years ago
15

Hayward Co. has a 22 percent tax rate. Its total interest payment for the year just ended was $14.3 million. What is the interes

t tax shield
Business
1 answer:
never [62]3 years ago
4 0

Answer:

$3,146,000

Explanation:

Calculation for Interest tax shield

Using this formula

Interest tax shield = Total Interest paid *Tax rate

Let plug in the formula

Interest tax shield = $14,300,000*22%

Interest tax shield = $3,146,000

Therefore the Interest tax shield will be $3,146,000

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