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

question 20

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 $600 million 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:

Job Assignment

The process of allocating specific tasks, duties, and responsibilities to employees as part of their roles within an organization.

Integrated Model

A cohesive framework that combines multiple theories or components into a single, comprehensive explanation or approach.

Individual Attributes

Individual attributes are personal qualities, traits, or characteristics that define or distinguish one person from another.

Organizational Support

The extent to which an organization values its employees, helps them when it's needed, and establishes a supportive work environment.