What Is the Amount of Annual Interest Tax Shield for a Firm

question 15

Multiple Choice

What is the amount of annual interest tax shield for a firm with $3 million in debt that pays 12% interest if the corporate tax rate is 35%?

• A)$126,000
• B)$234,000
• C)$360,000
• D)$1,050,000

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Definitions:

Conduct Disorder

A mental disorder diagnosed in childhood or adolescence characterized by a persistent pattern of disruptive and violent behaviors.

Prevalence

The frequency of a disorder in a population at a given point or period of time.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a manual published by the American Psychiatric Association that classifies mental disorders, providing standard criteria and definitions.

Diagnostic Criteria

Are a set of standardized guidelines used to determine the presence of a particular mental or physical health condition.