Compute the After-Tax Interest Expense for a Firm with Interest

question 70

Multiple Choice

Compute the after-tax interest expense for a firm with Interest on Excess Cash = $2,000, Interest on Debt = $7,000, and a tax rate of 30%.

• A) $2,500
• B) $2,800
• C) $3,100
• D) $3,500

---

Definitions:

European Union

is a political and economic union of 27 member states that are located primarily in Europe, committed to regional integration, characterized by the adoption of common policies and a single market.

Potential Consumers

are individuals who have shown interest or possess characteristics that make them likely to purchase a product or service but have not yet become actual customers.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aiming to ensure free movement of people, goods, services, and capital among its members.

Trade and Customs Laws

Regulations governing the import and export of goods between countries, including duties, tariffs, and the enforcement of intellectual property rights.