Incite Co has a 35 percent tax rate Its total interest payme

Incite Co has a 35 percent tax rate Its total interest payment for the year just ended was $34 4 million What is the interest tax shield? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g.. 1,234,567. Round your answer to the nea umber,e.g.32) Interest tax shield

Solution

Interest tax shield=Interest payment for the year*Tax rate

which is equal to

=($34.4million*35%)

which is equal to

$12,040,000.