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

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Involuntary Client

A person who receives counseling or therapy services under pressure or coercion, often mandated by legal or institutional authorities.

Perceived Threat

An individual's subjective assessment of danger or harm that may arise from a situation or activity.

Racial Minority

A group of people identified by their race who are fewer in number compared to the dominant group in a society.