Pixel Animations has $6 million debt outstanding with 7% interest rate. The firm’s tax rate is...

Pixel Animations has $6 million debt outstanding with 7% interest rate. The firm’s tax rate is 35%. What is the annual tax shield for Pixel Animation?

Expert Solution

Ans $ 147000

ANNUAL TAX SHIELD =	INTEREST * TAX RATE
	6000000 * 7% * 35%
	147000

jeff jeffy answered 2 years ago

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