A Firm Incurs $35,000 in Interest Expenses Each Year

question 45

Multiple Choice

A firm incurs $35,000 in interest expenses each year. If the tax rate of the firm is 30%, what is the effective after-tax interest rate expense for the firm?

• A) $22,050.00
• B) $24,500.00
• C) $28,175.00
• D) $29,400.00

---

Definitions:

Eco-Friendly

Practices or products designed to have minimal impact on the environment, promoting conservation, reducing pollution, and supporting sustainable living.

Teleconferencing

A method of communication whereby participants in different locations are able to have a meeting through telephone or video links.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people.

Blue-Collar Workers

Employees who perform manual labor, often in manufacturing, construction, and maintenance fields, typically requiring physical skill and effort.