A Firm Incurs $70,000 in Interest Expenses Each Year

question 40

Multiple Choice

A firm incurs $70,000 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) $34,300.00
• B) $39,200.00
• C) $49,000.00
• D) $56,350.00

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