Suppose that one of the incentives provided by Bangladesh to attract Nike into setting up a...
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Suppose that one of the incentives provided by Bangladesh to attract Nike into setting up a local production facility is an 8-year, USD17 million loan at 5.75%. The principal is to be repaid at the end of the 8th year. The market interest rate on such a loan is 9.45%. With a marginal tax rate of 20%, how much is this loan worth to Nike? a. None of the options this is question are correct. b. USD3.306 million O c USD3.945 million d. USD1.882 million e. USD3.424 million. OO Suppose that one of the incentives provided by Bangladesh to attract Nike into setting up a local production facility is an 8-year, USD17 million loan at 5.75%. The principal is to be repaid at the end of the 8th year. The market interest rate on such a loan is 9.45%. With a marginal tax rate of 20%, how much is this loan worth to Nike? a. None of the options this is question are correct. b. USD3.306 million O c USD3.945 million d. USD1.882 million e. USD3.424 million. OO
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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