If a corporation issued 3000000 in bonds which pay 5 annual


If a corporation issued $3,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?

a.   $3,000,000

b.   $45,000

c.   $150,000

d.   $105,000

 

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Accounting Basics: If a corporation issued 3000000 in bonds which pay 5 annual
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