Multiple Choice
Sam's Men's Wear has 2,500 bonds outstanding with a face value of $1,000 each and a coupon rate of 7.5%. The interest is paid semi-annually. What is the amount of the annual interest tax shield if the tax rate is 34%?
A) $63.75
B) $123.75
C) $31,400.00
D) $63,750.00
E) $123,750.00
Correct Answer:
Verified
Correct Answer:
Verified
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