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Georga's Restaurants Has 5,000 Bonds Outstanding with a Face Value

Question 81

Multiple Choice

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 semi-annually.What is the amount of the annual interest tax shield if the tax rate is 37 percent?


A) $152,625.00
B) $162,411.90
C) $187,750.00
D) $210,420.00
E) $233,887.50

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