What is the annual net cash cost

Reference no: EM13700976

If a corporation issued $3,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?

a. $3,000,000

b. $45,000

c. $150,000

d. $105,000

Reference no: EM13700976

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