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With its current leverage, Impi Corporation will have net income next year of $ 9.0...

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Question

Accounting

With its current leverage, Impi Corporation will have net income next year of

$ 9.0

million. If Impi's corporate tax rate is

38 %

and it pays

7 %

interest on its debt, how much debt can Impi issue this year and still receive the benefit of the interest tax shield next year?

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