Effect of tax saving for the company

Dear sir,

The below para is taken from the notes of chapter 19:
“As the company has more debt borrowing and therefore pays more interest, they will pay less tax on the same (before interest) profits and therefore be able to distribute more in total (to equity and debt together).”

I want to be clear on it so please correct me if I am wrong in the below para in my own words:
“As the company raises more debt and pays more interest on it, then the company will save tax on interest payments (hence the WACC of the company will be cheaper). Therefore it will have more cash/income available to be distributed to equity or debt lenders at year end for the next years”

I considered the below example:
Income 100
Expenses (60)
PBIT 40
Interest (15)
PBT 25
Tax (7.5) – Tax on interest will be saved here.
Net profit 17.5 – This can be partly distributed as dividend to equity lenders and partly re-invested to pay for future interest payments and future dividends.

Thanks as always,