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:

Medical Asepsis

A set of infection-control practices used to reduce the risk of transmitting pathogens and achieve a clean environment.

Handwashing

The act of cleaning hands with soap and water or hand sanitizer to remove germs and prevent the spread of infections.

Surgical Procedures

Operations carried out to treat diseases, injuries, or deformities by manual or instrumental means.

Autoclaving

A sterilization method using high-pressure steam to kill all forms of microorganisms, including spores, on surgical equipment or other items.