What Is the Amount of the Annual Interest Tax Shield

question 66

Multiple Choice

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

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

---

Definitions:

ICD-10-CM

The acronym for International Classification of Diseases, Tenth Revision, Clinical Modification.

Neoplasms

Abnormal growths of tissue that can be benign or malignant.

Classified

Categorized or arranged in classes or categories according to shared qualities or characteristics.

Anatomical Site

A specific location on or within the human body as defined for purposes of diagnosis or treatment.