Multiple Choice
Your firm has a $295,000 bond issue outstanding.These bonds have a 6.35 percent coupon,pay interest semiannually,and have a current market price equal to 101 percent of face value.What is the amount of the annual interest tax shield given a tax rate of 35 percent?
A) $6,125.50
B) $6,556.38
C) $12,176.13
D) $6,621.94
E) $12,297.89
Correct Answer:
Verified
Correct Answer:
Verified
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