Baker Breads Has $428,000 of Debt Outstanding That Is Selling

question 45

Multiple Choice

Baker Breads has $428,000 of debt outstanding that is selling at par and has a coupon rate of 6.25 percent.The tax rate is 34 percent.What is the present value of the tax shield?

• A)$9,095
• B)$10,459
• C)$52,760
• D)$145,520
• E)$147,600

---

Definitions:

HIV Vaccine

A vaccine that is under research and development to prevent or treat the human immunodeficiency virus (HIV).

Antibacterial Soap

A type of soap containing chemical ingredients intended to kill or inhibit the growth of bacteria on the skin.

Alcohol-based Rub

A disinfectant preparation for hands that contains alcohol, used to prevent infection by killing bacteria and viruses.

Medical Asepsis

Practices aimed at reducing the number and transmission of pathogens to prevent infections, often through sterilization and disinfection methods.