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Homework answers / question archive / Without? leverage, Impi Corporation will have net income next year of $9

Without? leverage, Impi Corporation will have net income next year of $9

Finance

Without? leverage, Impi Corporation will have net income next year of $9.5 million. If? Impi's corporate tax rate is 21% and it pays 10% interest on its? debt, how much additional debt can Impi issue this year and still receive the benefit of the interest tax shield next? year? (Note: Assume? Impi's revenues exceed $24 ?million, and that interest tax deductions are limited to 30% of EBIT under the? TCJA.)

The debt is ?$

nothing

 

million. ?(Round to three decimal? places.)

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