Question

What is the depreciation tax shield if EBIT is $600, depreciation is $1,800, and the tax rate is 30 percent

Answer 1

The depreciation tax shield based on the EBIT, the tax rate and the depreciation is $540.

How do you find the depreciation tax shield?

This can be found as:

= Depreciation x Tax rate

Solving gives:

= 1,800 x 30%

= $540

Find out more on the depreciation tax shield at https://brainly.com/question/24192125.

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