Incite Co has a 30 percent tax rate Its total interest payme

Incite Co. has a 30 percent tax rate. Its total interest payment for the year just ended was $43.4 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 nearest whole number, e.g., 32.) Interest tax shield

Solution

Solution:

Total interest payment = $43.4 million = $43,400,000

Tax rate = 30%

Interest tax shield = $43,400,000 * 30% = $13,020,000