The interest tax shield occurs because ________. a. Interest payments are a tax-deductible expense b. Interest payments

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The interest tax shield occurs because ________.

a. Interest payments are a tax-deductible expense

b. Interest payments are made from after-tax income

c. Investors require a lower rate of return the higher the company’s tax rate

d. Investors require a lower rate of return the more debt the company incurs

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Principles Of Finance

ISBN: 9798439388899

1st Edition

Authors: Julie Dahlquist, Rainford Knight

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Question Posted: Jun 24, 2022 05:48 AM

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The interest tax shield occurs because ________. a. Interest payments are a tax-deductible expense b. Interest payments

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a Interest payments are a taxdeductible expense The interest tax shi...View the full answer

Principles Of Finance

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