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Consider the following statements: The interest tax shield for a firm: I. Is the tax benefit a firm derives from paying interest II. Will decrease
Consider the following statements: The interest tax shield for a firm: I. Is the tax benefit a firm derives from paying interest II. Will decrease as the corporate income tax rate is increased III. Is the yield to maturity on a firms bonds multiplied by the market value of the bonds outstanding Which of the statements is true?
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a
I only
b
II only
c
III
d
I, II and II only
e
None of the above
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