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EpiscoWhat EpiscoWhat
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6 years ago
The after tax interest expense in 2010 is closest to:
A) 0
B) 2856
C) 5304
D) 8160
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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wrote...
6 years ago
C
Explanation:  C) After-Tax interest expense = interest expense(1 - Tc) = 8160(1 - .35) = 5304
Note Tc = income tax/pre-tax income = 5678/16,223 = 35%
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