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1- Dharma supply has earnings before interest and taxes ( EBIT) of 564,000, interest expenses of $ 306,000 and faces a corporate tax rate of 36%. A)

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1-      Dharma supply has earnings before interest and taxes ( EBIT) of 564,000, interest expenses of $ 306,000 and faces a corporate tax rate of 36%.

A)    What is Dharma supply net income?

B)    What would Dharma’s net income be if it didn’t have any debt( and consequently no interest expense?

C)    The firm interest tax saving?

A)    Dharma supply net income is $ … ( round to the nearest dollar )

B)    If it didn’t have any debt, Dharma supply’s net income is $ ….(Round nearest dollar)

C) The  firm’s interest tax saving are $ …( round to the nearest dollar)

 
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