A Firm Incurs $40,000 in Interest Expenses Each Year

question 76

Multiple Choice

A firm incurs $40,000 in interest expenses each year.If the tax rate of the firm is 40%,what is the effective after-tax interest rate expense for the firm?

• A)$22,000
• B)$24,000
• C)$27,000
• D)$29,000

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