Louis Internationa is considering retiring a $180 million bond issue sold to the public 15 years ago.The original maturity was 25 years.If the bonds were initially sold at 97,then what is the after-tax cash flow effect,today,of the accelerated amortization if Louis is in the 35% marginal tax bracket
A) $ 756,000
B) $ 75,600
C) $1,890,000
D) $ 216,000
Correct Answer:
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