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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 $600 million per year permanently,then the value that would be created is closest to:
Customer Service
The support and assistance companies provide to their customers before, during, and after a purchase, crucial for customer satisfaction and loyalty.
Trust And Wisdom
Essential qualities in both personal and professional relationships, involving confidence in someone's reliability and soundness in judgment or knowledge.
Business Friendship
A professional relationship that involves mutual interests and cooperation between individuals who may also share a personal rapport beyond formal business interactions.
Personal Friendship
A close and intimate relationship formed between individuals through mutual affection and personal bond.
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