Answered: Bradford Corporation incurs $75,000 in…

Bradford Corporation incurs $75,000 in interest expenses each year. If the tax rate of the firm is 28%, what is the effective after-tax interest expense for the firm?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 8P

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Question

What is the effective after tax interest expense for the firm of this financial accounting question?

Bradford Corporation incurs $75,000 in interest expenses each year. If
the tax rate of the firm is 28%, what is the effective after-tax interest
expense for the firm?

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