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How much debt can cow corp issue this year and still

With its current leverage, COW COPR will have a net income next year of $7 million. If COW CORP corporate tax rate is 30% and it pays 7% interest on its debt, how much debt can COW CORP issue this year and still receive the benefit of the interest tax shield next year?

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Business Economics: How much debt can cow corp issue this year and still

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