Question
You are trying to determine the optimal capital structure of NYZ. Currently, NYZ has a debt amount of $100,000 with an interest rate of 11%,
You are trying to determine the optimal capital structure of NYZ. Currently, NYZ has a debt amount of $100,000 with an interest rate of 11%, an EBIT of $10,032, and a marginal tax rate of 36.1%. At this level of debt, what is the firm's implicit tax rate? Select one: a. 32.92% b. 34.32% c. 30.56% d. 36.10%
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
