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:

Bacterial Population

A bacterial population consists of a group of bacteria residing in a specific area, which can exhibit growth, mutual interactions, and adaptation to their environment.

Mutation

A change in the DNA sequence within a gene or chromosome of an organism leading to the creation of a new character or trait not found in the parental type.

Deoxyribonucleic Acid

A molecule that encodes an organism's genetic blueprint, commonly known as DNA.

Unpredictable Change

Refers to alterations in environmental, social, or other factors that cannot be anticipated with current knowledge or technology, often leading to significant impact on ecosystems or societies.