A Firm Has Interest Expense of $3 500 Each Year

question 66

Multiple Choice

A firm has interest expense of $3 500 each year for 10 years. If the tax rate is 35% and the discount rate is 8%, compute the value of the interest rate tax shield.

• A)$8 220
• B)$7 091
• C)$7 514
• D)$8 716

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Definitions:

Mathematical Abilities

The capacity to perform mathematical calculations, understand mathematical principles, and solve mathematical problems.

Drug Use

The act of consuming substances which can modify perception, mood, consciousness, or behavior; may include legal, prescription, or illicit drugs.

Sexuality

The capacity for sexual feelings and their expression, as well as how individuals identify and orient themselves in sexual aspects.

Chores

Chores are routine tasks or duties that are a regular part of maintaining and managing a household or work environment.