
11) If a corporation issued $3,000,000 in bonds which pay 10% annual interest, what is the annual net cash cost of this borrowing if the income tax ...
rate is 30%?
A. $3,000,000
B. $90,000
C. $300,000
D. $210,000

The annual net cash cost is D. $210,000
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User: 11) If a corporation issued $3,000,000 in bonds which pay 10% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?
A. $3,000,000
B. $90,000
C. $300,000
D. $210,000
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