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Problem:

A firm incurs $70,000 in interest expenses each year. If the tax rate of the firm is 20%,

Required:

Question: What is the effective after-tax interest rate expense for the firm?

A) $37,000

B) 49,000

C) 52,000

D) 64,000

E) 56,000

Note: Please show how to work it out.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91162563

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