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Vinil7 [7]
2 years ago
10

?if a corporation issued $8,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if

the income tax rate is 30%?
Business
1 answer:
MrRissso [65]2 years ago
4 0
$8,000,000 - corporate issued
5 % -  annual interest
30 % - income tax rate
Annual net cash cost - ?

Formula and Solution - (8,000,000 x 0.05) x 0.7 = 280,000
Answer: The Annual net cash cost - $280,00
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