Multiple Choice
Ernie's has 4,200 bonds outstanding with a face value of $1,000 each,a market value of $1,060 each,and a coupon rate of 7.6 percent.What is the amount of the annual interest tax shield if the tax rate is 35 percent?
A) $118,423
B) $99,714
C) $100,780
D) $111,720
E) $102,250
Correct Answer:
Verified
Correct Answer:
Verified
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