Question
Georga's Restaurants has 5,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 8.25 percent. The interest is paid semiannually.
| Georga's Restaurants has 5,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 8.25 percent. The interest is paid semiannually. What is the amount of the annual interest tax shield if the tax rate is 37 percent? |
A.
| $210,420.00 |
| B. $233,887.50 |
| C. $162,411.90 |
| D. $152,625.00 |
E.
| $187,750.00 |
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Research In Finance
Authors: John W. Kensinger
1st Edition
0857245414, 978-0857245410
