Pls explain and prodive a resource to fine equation.
Computing interest tax savings.Dharma Supply has earnings before interest and taxes (EBIT) of $500,000, interest expenses of $300,000, and faces a corporate tax rate
of 35%.
a. What is Dharma Supply’s net income?
b. What would Dharma’s net income be if it didn’t have any debt (and consequently no
interest expense)?
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