Multiple Choice
A & K Co. expects to have earnings before taxes of $250,000 to $300,000. The company's marginal tax rate is 39% and its average tax rate about 33%. For every additional dollar of interest expense, A & K's taxes will
A) increase by 39 cents.
B) fall by 39 cents.
C) be unaffected.
D) fall by about 33 cents.
Correct Answer:
Verified
Correct Answer:
Verified
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