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A tax shield (more than one answer) a. Infers a suboptimal amount of debt for a firm b. Would apply to a zero coupon bond

A tax shield (more than one answer)

a. Infers a suboptimal amount of debt for a firm

b. Would apply to a zero coupon bond

c. Would still be useful for a non-profit that pays no corporate taxes

d. Has benefits that are offset by financial distress

e.Would be sought by LBOs

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