Net of ordinary income taxes,the amount that investors would have if they invested the $200 million on their own is closest to:
A)$5.5 million
B)$6.5 million
C)$7.0 million
D)$10.0 million

Name: Net of ordinary income taxes,the amount that investors would have if they invested the $200 million on their own is closest to: A)$5.5 million B)$6.5 million C)$7.0 million D)$10.0 million
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Question

Quizplus · Accepted Answer

C)Net amount = investment × interest × (1 - ordinary tax rate)= $200 million × 5% × (1 - 30%)= $7.0 million

Net of Ordinary Income Taxes,the Amount That Investors Would Have