A Firm Has Interest Expense of $2500 Each Year for Ten

question 82

Multiple Choice

A firm has interest expense of $2500 each year for ten years.If the tax rate is 30% and the discount rate is 7%,compute the value of the interest rate tax shield.

• A)$5,744
• B)$5918
• C)$5268
• D)$6987
• E)$7212

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Definitions:

Graduating

The process of completing a course of study at a school, college, or university, culminating in the achievement of a diploma or degree.

Employment Discrimination

Unfair or unequal treatment of employees based on race, gender, religion, nationality, physical or mental disability, or age.

Personal Prejudices

Preconceived opinions that are not based on reason or actual experience.

Economic Theory

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