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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Investments Analysis And Management
Authors: Charles Jones, Nick Jones
11th Edition
0470477121, 9780470477120
