A Firm Is Making a Payment of $1,000 to Its

A firm is making a payment of $1,000 to its investors. The firm is in the 34% marginal tax bracket. If this payment is made in the form of interest to its bondholders, how much does the
Firm have to have in earnings to be able to make the payment? Round your answer to the
Nearest dollar.

A) $1,340
B) $1,515
C) $2,941
D) none of the above