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06-11-2020
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Hayward Co. has a 22 percent tax rate. Its total interest payment for the year just ended was $14.3 million. What is the interest tax shield

Respuesta :

abiolataiwo2015 abiolataiwo2015

08-11-2020

Answer:

$3,146,000

Explanation:

Calculation for Interest tax shield

Using this formula

Interest tax shield = Total Interest paid *Tax rate

Let plug in the formula

Interest tax shield = $14,300,000*22%

Interest tax shield = $3,146,000

Therefore the Interest tax shield will be $3,146,000

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