Question
In the calculation of the interest tax shield, what is the implicit assumption regarding future debt levels? the interest expense is treated as a perpetuity,
In the calculation of the interest tax shield, what is the implicit assumption regarding future debt levels?
the interest expense is treated as a perpetuity, implying the debt/equity ratio will not change in the future
the interest expense is treated as a perpetuity, implying the debt/equity ratio will change in the future
the interest expense is treated as a perpetuity, implying the value of debt will not change in the future
the interest expense is treated as a perpetuity, implying the value of debt will not change in the future
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Advanced Financial Accounting
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
10th edition
978-0078025624
