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10. The interest shield of a firm A) Is the tax benefit a firm derives from paying interest B) Will decrease as the corporate income

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10. The interest shield of a firm A) Is the tax benefit a firm derives from paying interest B) Will decrease as the corporate income tax rate is increased C) Is the yield-to-maturity on a firm's bonds multiplied by the market value of bonds outstanding and by the firm's tax rate D) Is equal to the coupon interest rate of the firm's debt E) Will be positive at all levels of EBIT 2 | Page

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