Use the Information for the Question(s)below

question 87

Multiple Choice

Use the information for the question(s) below.
Rosewood Industries has EBIT of $450 million,interest expense of $175 million,and a corporate tax rate of 21%.
-The amount of Rosewood's interest tax shield is closest to:

• A)$115 million.
• B)$290 million.
• C)$175 million.
• D)$37 million.

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Definitions:

Economies of Scale

The cost advantages that enterprises enjoy due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Individual Farmers

Independent agricultural producers who own or manage their farm operations, differing from corporate or collective farming operations.

Industrial Education

Educational programs focused on teaching the skills and knowledge necessary for employment in industries, including technical training and apprenticeships.

Social Darwinism

A theory that applies the concept of survival of the fittest to human society, justifying inequalities and promoting a laissez-faire political and economic system.