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Incite co. has a 36 percent tax rate. its total interest payment for the year just ended was $35 million. what is the interest tax shield?

Incite co. has a 36 percent tax rate. its total interest payment for the year just ended was $35 million. what is the interest tax shield?
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Incite co. has a 36 percent tax rate. its total interest payment for the year just ended was $35 million. what is the interest tax shield?

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User LivingstoneM
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1 Answer

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Tax shield is the saving in tax due to exemption of tax on interest expense = interest expense * tax rate = $35 million * 36% = $ 12.6 million
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User KMoraz
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