Multiple Choice
Batter's Home has 3,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 8%.The interest is paid semi-annually.What is the amount of the annual interest tax shield if the tax rate is 30%?
A) $52,000
B) $60,000
C) $62,500
D) $68,000
E) $72,000
Correct Answer:
Verified
Correct Answer:
Verified
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