Assuming That the Risk of the Tax Shield Is Only

question 59

Multiple Choice

Assuming that the risk of the tax shield is only 6% even though the debt pays 8%,then the present value of LCMS' interest tax shield is closest to:

• A)$24.5 million
• B)$18 million
• C)$33.0 million
• D)$20.0 million

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Definitions:

Plasmodesmata

Channels in plant cell walls that enable communication and transport between cells.

Cytoplasm

The cytoplasm is the gel-like material inside the cell membrane of all cell types, containing organelles and soluble molecules like enzymes and nutrients, involved in cellular processes.

Energy Transformations

The process of changing one form of energy into another, such as the conversion of electrical energy to heat energy.

Pseudopods

Pseudopods, or false feet, are temporary protrusions of the cell membrane in some eukaryotic cells, used for movement and engulfing food.