Use the Following Information to Answer the Question(s)below

question 47

Multiple Choice

Use the following information to answer the question(s) below.
Google Corporation has no debt on its balance sheet in 2008,but paid $1.6 billion in taxes.Assume that Google's marginal tax rate is 35% and Google's borrowing cost is 7%.
-Assume that investors hold Google stock in retirement accounts that are free from personal taxes.If Google were to issue sufficient debt to reduce its taxes by $1 billion per year permanently,then the amount that Google needs to borrow is closest to:

• A)$14.25 billion.
• B)$22.00 billion.
• C)$24.50 billion.
• D)$40.75 billion.

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Definitions:

Mortality

The state of being subject to death; often used in statistics to refer to the rate of death within a population.

Peripheral-Route Cues

Aspects of a message that are not directly related to the content but can influence an individual's attitude change, such as the attractiveness of the speaker.

Central Route Processing

A method of persuasion that involves deeply processing the content of a message, focusing on the arguments and evidence presented.

Low Self-Monitoring

A trait characterized by a consistent behavior across different situations due to a disregard for social cues or expectations.