Stone House Cafe has a 30 percent tax rate and total taxes of $35,280. What is the value of the interest tax shield if the interest expense is $16,700?

Name: Stone House Cafe has a 30 percent tax rate and total taxes of $35,280. What is the value of the interest tax shield if the interest expense is $16,700?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The interest tax shield is calculated as the interest expense multiplied by the tax rate: $16,700 * 0.30 = $5,010.

Stone House Cafe Has a 30 Percent Tax Rate and Total