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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 35% tax rate on interest income. If Google were to issue sufficient debt to reduce its corporate taxes by $1 billion per year permanently, then the value that would be created is closest to:
A) $6.4 billion
B) $8.6 billion
C) $9.8 billion
D) $14.3 billion
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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EgorGruzdevEgorGruzdev
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6 years ago
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Devan Shah

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wrote...
#2
3 years ago
thanks
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