Assuming That the Corporation Has a 34% MTR,which of the Following

question 16

Multiple Choice

Assuming that the corporation has a 34% MTR,which of the following statements is true?

• A)Jacky,Inc.borrowed $500,000 and paid interest of $48,000; the after-tax cost of the interest was $31,680.
• B)Jacky,Inc issued 1,000 shares of 7%,$100 par preferred stock for $100,000.The after-tax cost of the $7,000 dividend paid was $4,620.
• C)Jacky,Inc issued 1,000 shares of 7%,$100 par preferred stock for $100.The after-tax cost of the $7,000 dividend paid was $2,380.
• D)Jacky,Inc.borrowed $500,000 and paid interest of $48,000; the after-tax cost of the interest was $16,320.

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Definitions:

Order

A taxonomic category made up of related families.

Potential Energy

The energy stored within a physical system due to the position, arrangement or state of its constituents, capable of causing movement.

Work

Any change in the state or motion of matter.

Position

The location of something or someone in relation to other objects or individuals.