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:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that outlines a five-tier model of human needs, from physiological needs at the base to self-actualization at the top.

Step-By-Step Sequence

An ordered series of actions or stages that lead to achieving a specific goal or completing a process.

Alderfer's ERG Theory

A motivational theory presented by Clayton Alderfer that categorizes human needs into three groups—Existence, Relatedness, and Growth—which influence individual behavior.

McClelland's Acquired Needs Theory

A motivational theory suggesting that individuals are driven by three main needs: achievement, affiliation, and power, which they acquire over time.