On January 1, Year 1, Brown Co. issued bonds with a face value of $200,000, a stated rate of interest of 10%, and a 20-year term to maturity. The bonds were issued at face value. If Bluefield's tax rate is 40%, what is the after-tax cost of borrowing related to these bonds for Year 1?

A. $8,000
B. $28,000
C. $12,000
D. $20,000


Answer: C

Business

You might also like to view...

Identify the five main characteristics that affect the diffusion of innovations. Describe each and provide an example

What will be an ideal response?

Business

Ideal times for quality testing of a product are ______.

A. during the design phase B. during marketing C. during the alpha testing phase D. during the recycle phase

Business

Consumers who create consumer-generated content for the fun and challenge of it rather than for pay are referred to as ________

A) microcelebrities B) amafessionals C) folksonomists D) open sourcers E) instapreneurs

Business

Sequential activities hold just as much potential for resource conflicts as parallel activities.

Answer the following statement true (T) or false (F)

Business