RoxyInternationa is considering retiring a $280 millionbond issue sold to the public 15 years ago. The original

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RoxyInternationa is considering retiring a $280 millionbond issue sold to the public 15 years ago. The original maturity was 25 years.If the bonds were initially sold at 98,then what is the after-tax cash flow effect, today, of the accelerated amortization if Roxy is in the 35% marginal tax bracket?

$224,000

$1,960,000

$784,000

$78,400

ANS:C

Posted Date: May 18, 2024 02:17 PM

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