Use the following information to answer the question(s) below:
-The after tax interest expense in 2010 is closest to:
A) 0
B) 2,856
C) 5,304
D) 8,160
E) 11,016

Name: Use the following information to answer the question(s) below: -The after tax interest expense in 2010 is closest to: A) 0 B) 2,856 C) 5,304 D) 8,160 E) 11,016
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Use the following information to answer the question(s) below:  
-The after tax interest expense in 2010 is closest to:
A) 0 
B) 2,856 
C) 5,304 
D) 8,160 
E) 11,016

Quizplus · Accepted Answer

C) After-Tax interest expense = interest expense(1 - T_c) = 8,160(1 - .35) = 5,304 Note T_c = income tax / pre-tax income = 5,678/16,223 = 35%

Use the Following Information to Answer the Question(s) Below