A Firm Incurs $50,000 in Interest Expenses Each Year

question 6

Multiple Choice

A firm incurs $50,000 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)$27,000
• B)$29,000
• C)$32,000
• D)$35,000

---

Definitions:

Alveoli

Small air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place, crucial for breathing and gas exchange.

Microvilli

Extensive tiny projections on the surface of some cells that increase the surface area for absorption or secretion.

Renal Artery

The artery that supplies blood to the kidneys, essential for the filtration and regulation of electrolyte levels in the blood.

Ureter

A pair of tubes that carry urine from the kidneys to the bladder, playing a crucial role in the urinary system of mammals, including humans.