Use the Table for the Question(s)below

question 17

Multiple Choice

Use the table for the question(s) below.
Consider the following income statement for Kroger Inc.(all figures in $ Millions) :
-The interest rate tax shield for Kroger in 2004 is closest to:

• A)$268 million.
• B)$393 million.
• C)$211 million.
• D)$94 million.

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Definitions:

Floating-Rate Bonds

Bonds with variable interest rates that adjust periodically based on a benchmark or index rate.

Future Interest Rates

Future interest rates refer to the anticipated rates at which borrowers will be charged for loans or the return investors will earn on deposits, based on predictions.

Increase

A rise in the quantity or value of something, such as profits, revenue, weight, etc.

Put Provision

A clause in a bond or other security that allows the holder to force the issuer to buy back the security before its maturity date.