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Business, 19.10.2019 02:30 aprilleigh102

Hicks health clubs, inc., expects to generate an annual ebit of $750,000 and needs to obtain financing for $1,200,000 of assets. their tax bracket is 40%. if the firm goes with a short-term financing plan, their rate will be 7.5 percent, and with a long-term financing plan their rate will be 9 percent. by how much will their earnings after tax change if they choose the more aggressive financing plan instead of the more conservative? a. $10,800 b. ($10,000) c. ($6,000) d. $6,000?

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