Will invest money or just borrow the one M

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If X Corporation borrowed P1M and the prevailing tax rate is 35%.

Problem a. What is the interest rate per annum if interest expense is P50,000? Show solution, round off final answer to 2 decimal places.

Problem b. If an investor has available funds of 1M and desired to have a return of 7%, will he invest his money or just borrow the 1M? Why? Supplement reason with solution.

Reference no: EM132944638

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