A Firm Has Interest Expense of $3500 Each Year for Ten

question 109

Multiple Choice

A firm has interest expense of $3500 each year for ten years.If the tax rate is 35% and the discount rate is 8%,compute the value of the interest rate tax shield.

• A)$7091
• B)$7514
• C)$8220
• D)$8716
• E)$8802

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Definitions:

Billable Hours

The hours that legal professionals charge their clients for, typically reflecting work done on a case.

Legal Professionals

Individuals who work in the legal field, including lawyers, judges, paralegals, and legal assistants, among others.

Billing Rates

The amount of money charged per unit of time by professionals, such as lawyers, for their services.

Paralegals

Legal assistants who perform various tasks to support lawyers, such as conducting legal research and drafting documents.