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Problem:

A firm incurs 70k in interest expenses each year. If the tax rate of the firm is 20%, what is the effective after-tax interest rate expense for the firm?

a. 37k

b. 49k

c. 52k

d. 64k

e. 56k

Note: Please show how you came up with the solution.

Basic Finance, Finance

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  • Reference No.:- M91162542

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