A Firm Has Interest Expense of $6500 Each Year for Ten

question 105

Multiple Choice

A firm has interest expense of $6500 each year for ten years.If the tax rate is 35% and the discount rate is 6%,compute the value of the interest rate tax shield.

• A)$16,744
• B)$16,424
• C)$16,578
• D)$16,987
• E)$17,219

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Definitions:

Economic Independence

The state of having sufficient personal wealth to live, without having to work actively for basic necessities.

Entrepreneurship

The activity of setting up a business or businesses, taking on financial risks in the hope of profit.

Economic Independence

The state of having sufficient personal wealth to live, without needing to work actively for basic necessities, allowing individuals or nations to have control over their financial future.

Visible Minorities

Refers to persons, other than Indigenous peoples, who are non-Caucasian in race or non-white in color and are recognized in certain jurisdictions for policy and diversity planning.