Use the Following Information to Answer the Question(s)below

question 47

Multiple Choice

Use the following information to answer the question(s) below.
Google Corporation has no debt on its balance sheet in 2008,but paid $1.6 billion in taxes.Assume that Google's marginal tax rate is 35% and Google's borrowing cost is 7%.
-Assume that investors hold Google stock in retirement accounts that are free from personal taxes.If Google were to issue sufficient debt to reduce its taxes by $1 billion per year permanently,then the amount that Google needs to borrow is closest to:

• A)$14.25 billion.
• B)$22.00 billion.
• C)$24.50 billion.
• D)$40.75 billion.

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Definitions:

Surface Temperature

The air temperature near the Earth's surface, influenced by sunlight, atmospheric conditions, and geographical location, critical for weather forecasts and climatology.

Carbon Dioxide Concentration

The amount of carbon dioxide molecules present in a particular volume of atmosphere, typically expressed in parts per million by volume.

Temperature Decreased

A condition where the environmental or specific area's temperature lowers from a previous point.

Years Ago

A term used to reference a specific amount of time before the present, often used in historical and geological contexts.