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:

Countercultures

Subcultures that reject the norms, values, and practices of the larger society, often advocating for radical changes and alternative lifestyles.

Analyze Data

The process of examining, cleaning, transforming, and modeling data to discover useful information, inform conclusions, and support decision-making.

Operational Definitions

Specific descriptions of the procedures or measures used to define research variables, allowing replication and understanding in scientific studies.

Research Design

A strategic framework for conducting research that outlines how data will be collected, analyzed, and interpreted.