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

question 55

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 value that would be created is closest to:

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

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Definitions:

Quality Job Openings

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Women

Female human beings, often discussed in contexts emphasizing gender roles, rights, and social, cultural, and biological distinctions from men.

Anomie

A societal condition marked by a breakdown of social norms and values, resulting in a sense of aimlessness or despair among individuals.

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The fact or process of belonging to a group with shared interests or characteristics, playing a significant role in shaping identity and social connections.