Nz Corporation reported earning before interest and taxes of Rs-00267
Nz Corporation reported earning before interest and taxes of Rs.500, 000 for the current year. It has taken a long term loan of Rs.2 million from a local bank @ 10% interest. The tax is charged at the rate of 32%.What will be the saving in taxes due to presence of debt financing in the capital structure of the firm?
This multiple choice question (MCQ) is related to the book/course
vu acc501 Business Finance.
It can also be found in
vu acc501 Mid Term - Quiz No.3.
Nz Corporation reported earning before interest and taxes of Rs.500, 000 for the current year. It has taken a long term loan of Rs.2 million from a local bank @ 10% interest. The tax is charged at the rate of 32%.What will be the saving in taxes due to presence of debt financing in the capital structure of the firm?
Rs.60, 000
Rs.64, 000
Rs.72, 000
Rs.74, 000
