Genetech Has $4,000,000 in Assets

question 51

Multiple Choice

Genetech has $4,000,000 in assets. It has decided to finance 30% with long-term financing (9% rate) and 70% with short-term financing (7%) rate. Assuming a 21% tax rate, what will its annual after-tax interest costs be?

• A) $81,000
• B) $147,000
• C) $182,400
• D) $240,160

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Definitions:

Precede

To come before something else in time, order, or position.

Demonstrably

Capable of being proven or shown through evidence or clear examples.

Ex Post Facto Design

An “after the fact” experimental design in which there is no control over experimental conditions.

Two-group Pretest

A research design involving two groups, where both are tested before the treatment or intervention is applied to one of them.