If a Corporation Issued $4,000,000 in Bonds Which Pay 5

question 33

Multiple Choice

If a corporation issued $4,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?

• A) $2,000,000
• B) $60,000
• C) $200,000
• D) $140,000

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Systematically

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A statement that explains the meaning of a term or concept.

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was a prominent criminologist known for his work on violence and criminal justice issues.