What is the annual net cash cost of the borrowing

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Reference no: EM132816308

Problem 1: If a corporation issued $4070000 in bonds that pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?

A. $61050
B. $203500
C. $2035000
D. $142450

Reference no: EM132816308

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