Use the Following Information to Answer the Question(s)below

question 20

Multiple Choice

Use the following information to answer the question(s) below.
Google Corporation has no debt on its balance sheet in 2008,but paid $1.6 billion in taxes.Assume that Google's marginal tax rate is 35% and Google's borrowing cost is 7%.
-Assume that investors hold Google stock in retirement accounts that are free from personal taxes.If Google were to issue sufficient debt to reduce its taxes by $600 million per year permanently,then the amount that Google needs to borrow is closest to:

• A)$14.25 billion.
• B)$22.00 billion.
• C)$24.50 billion.
• D)$40.75 billion.

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Definitions:

Brain Areas

Distinct sections of the brain dedicated to specific functions, such as the occipital lobe for vision or the temporal lobe for hearing and memory.

Universal Grammar Theory

A theory proposed by Noam Chomsky that suggests the ability to acquire language is innate to humans and that all languages share a common underlying structure.

Evidence

Information or data that are systematically collected to support or refute a particular claim or hypothesis.

Cochlear Implant

A medical device that bypasses damaged structures in the inner ear and directly stimulates the auditory nerve to provide a sense of sound to a person who is profoundly deaf or severely hard of hearing.