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johnpaech johnpaech
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6 years ago
Assume that investors in Google pay a 15% tax rate on income from equity and a 25% tax rate on interest income. If Google were to issue sufficient debt to reduce its taxes by $600 million per year permanently, then the effective tax advantage of this debt would be closest to:
A) 10%
B) 15%
C) 25%
D) 30%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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anicidanicid
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#1
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6 years ago
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johnpaech Author
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#2
5 years ago
You took a load off my back, thanks for answering correctly
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