If a Firm Borrows $50 Million for One Year at an Interest

question 8

Multiple Choice

If a firm borrows $50 million for one year at an interest rate of 9%, what is the present value of the interest tax shield? Assume a 30% tax rate.

• A) $50.00 million
• B) $17.50 million
• C) $1.445 million
• D) $1.239 million

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Definitions:

Dissociative Identity Disorder

A psychiatric disorder characterized by the presence of two or more distinct personality states that control a person's behavior in different situations.

Gender

A social and cultural construct relating to behaviors, roles, expectations, and identities based on perceived sex differences, often categorized as male, female, or non-binary.

Sexual Orientation

An enduring pattern of romantic or sexual attraction (or a combination of these) to persons of the opposite sex or gender, the same sex or gender, or both, or more than one gender.

Overdiagnosed

Refers to the occurrence when a condition or disease is diagnosed more frequently than it actually exists, possibly leading to unnecessary treatment.