Solved: How much debt can cowcow issue this year and still receive, Business Economics

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How much debt can cowcow issue this year and still receive

With its current leverage, COWCOW copr will have net income next year of $7 million. If COWCOWs corporate tax rate is 30% and it pays 7% interest on its debt, how much debt can COWCOW 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 cowcow issue this year and still receive

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