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

question 55

Multiple Choice

A firm incurs $70,000 in interest expenses each year.If the tax rate of the firm is 20%,what is the effective after-tax interest rate expense for the firm?

• A)$37,000
• B)$49,000
• C)$56,000
• D)$65,000

---

Definitions:

Individualized Consideration

involves tailoring leadership styles or approaches to meet the unique needs and abilities of each member of a group or organization.

Intellectual Stimulation

The aspect of leadership that challenges followers to think, question assumptions, and explore new ideas.

Charisma

A compelling attractiveness or charm that can inspire devotion in others, often seen as a unique personal quality.

Leader's Goal

The specific objectives or targets set by individuals in leadership positions to guide and shape the direction of their team or organization.