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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:
Net Monetary Cost
The total amount of money expended minus any financial gains, typically used to assess the total cost of an investment or purchase.
Training Costs
Expenses associated with the development, delivery, and materials needed for training programs, including instructor fees, technology, spaces, and resources.
Return On Investment
A financial metric used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments, often expressed as a ratio or percentage.
CEOs
Chief Executive Officers; the highest-ranking individuals in a company or organization, responsible for making major corporate decisions and managing overall operations and resources.
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