Use the table for the question(s)below.
Consider the following income statement for Kroger Inc.(all figures in $ Millions):
-The interest rate tax shield for Kroger in 2005 is closest to:

Question

Use the table for the question(s)below.
Consider the following income statement for Kroger Inc.(all figures in $ Millions): 
-The interest rate tax shield for Kroger in 2005 is closest to:

Quizplus · Accepted Answer

To calculate the interest rate tax shield, we need to multiply the interest expense by the tax rate. Therefore, the tax shield for Kroger in 2005 would be:
$650 * 0.3 = $195 million
Therefore, the closest option is D) $195 million.

Use the Table for the Question(s)below