Problem:
Dharma Supply has earnings before interest and taxes (EBIT) of $524000, interest expenses of $325000 abd faces a corporate tax rate of 36 percent.
Required:
Question 1: What is Dharma Supply's Net Income?
Question 2: What would dharmas net income be if it didnt have any debt?
Question 3: What are the firms interest tax savings?
Note: Please show how to work it out.