If a Firm Permanently Borrows $50 Million at an Interest

question 71

Multiple Choice

If a firm permanently borrows $50 million at an interest rate of 10 percent, what is the present value of the interest tax shield? Assume a 30 percent marginal corporate tax rate.

• A)$50 million
• B)$25 million
• C)$15 million
• D)$1.5 million

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Employee Counselling

A service provided by organizations to support the mental and emotional well-being of their employees, addressing personal and professional issues.

Recruitment Need

The necessity for an organization to engage in activities to attract and select candidates for employment openings.

Cost-Effective Method

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Professional Search Firms

Companies specializing in recruiting highly qualified candidates for specific positions within organizations.