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SteveS
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Grommit Engineering expects to have net income next year of

Resolved Question:

Grommit Engineering expects to have net income next year of $20.75 million and free cash flow of $22.15 million. Grommits marginal corporate tax rate is 35%.

A. if Grommit increases leverage so that its interest expense rises by $1 million, how will its net income change?

B. For the same increase in interest expense, how will free cash flow change?
Submitted: 7 years ago.
Category: Homework
Expert:  SteveS replied 7 years ago.
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