Use the Information for the Question(s)below

question 92

Multiple Choice

Use the information for the question(s) below.
LCMS Industries has $70 million in debt outstanding.The firm will pay only interest on this debt (the debt is perpetual) .LCMS' corporate tax rate is 21% and the firm pays a rate of 8% interest on its debt.
-The present value of LCMS' interest tax shield is closest to:

• A)$45.5 million.
• B)$20.0 million.
• C)$14.7 million.
• D)$35.0 million.

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Definitions:

Family Problem

Issues or conflicts arising within a family unit, potentially impacting the emotional, physical, and psychological well-being of its members.

On-The-Spot Interventions

Immediate actions taken in response to a situation or problem without prior planning.

Family System Equilibrium

The state of balance or stability within a family unit, where changes in one member's behavior can affect the entire system.

Rules

Prescribed directives or principles that govern the conduct of individuals within a society, organization, or system, ensuring order and fairness.