Use the Following Information to Answer the Following Question(s)

Multiple Choice

Use the following information to answer the following question(s) .
In 2004,A & K,Inc.expects operating income (earnings before interest and taxes) of $18,000,000.In addition,the corporation has $20,000,000 of debt outstanding with a 10 percent interest rate and will pay $1,000,000 in dividends to its common stockholders.
-A & K's marginal tax rate for 2004 will be:

A) 38 percent.
B) 35 percent.
C) 34 percent.
D) unknown because too little information is provided.