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

question 42

Multiple Choice

Use the following information to answer the question(s) below.
d'Anconia Copper has $200 million in cash that it can use for a share repurchase.Suppose instead that d'Anconia Copper invests the funds in an account paying 5% interest for one year.Assume that the corporate tax rate is 35%,the individual capital gains rate is 15% and the individual rate on ordinary income is 30%.
-The amount of additional cash that d'Anconia Copper will have at the end of the year net of corporate taxes is closest to:

• A)$2.0 million
• B)$5.5 million
• C)$6.5 million
• D)$7.0 million

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Work Force

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The international sector involving the manufacturing, distribution, and sale of motor vehicles.

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The total income generated by a business or entity from its activities over the course of a year, excluding expenses.