Suppose a project financed via an issue of debt requires five annual interest payments of $18 million each year. If the tax rate is 35% and the cost of debt is 7%, what is the value of the interest rate tax shield?
A) $20.66 million
B) $31.00 million
C) $25.83 million
D) $51.66 million
Answer: C
You might also like to view...
If a company contains a number of investment centers of differing sizes, return on investment (ROI) should be used rather than residual income to rank the financial performance of the divisions.
Answer the following statement true (T) or false (F)
How does habitual decision making differ from extended problem solving?
A) Extended problem solving uses behavioral learning, while habitual decision making relies upon cognitive learning. B) Consumers engaged in extended problem solving perceive less risk than consumers involved in habitual decision making. C) The level of involvement for habitual decision making is lower than it is for extended problem solving. D) Habitual decision making involves significant cognitive dissonance, while extended problem solving rarely involves cognitive dissonance. E) Consumers who are seeking to develop their loyalty to a brand would be more likely to make habitual decisions than use extended problem solving.
In the vertical analysis of a balance sheet, the base for current liabilities is total liabilities
Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. The HRIS expert must understand the process required to enter information into the HRIS and may also need to start the process or generate periodic reports. 2. Security within an HRIS is only of concern at the column and row levels. 3. BOB solutions reduce the complexity of the software architecture. 4. Proper planning can guarantee successful system implementation.