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The depreciation tax shield is defined as: [(Sales - costs)(1 - Tc)][(depreciation)(Tc)]. Depreciation - taxes. (Depreciation)(Tc). Net income + depreciation - taxes. (Depreciation)(1-Tc).
The depreciation tax shield is defined as:
| [(Sales - costs)(1 - Tc)][(depreciation)(Tc)]. |
| Depreciation - taxes. |
| (Depreciation)(Tc). |
| Net income + depreciation - taxes. |
| (Depreciation)(1-Tc). |
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Multinational Financial Management
Authors: Alan C Shapiro, Paul Hanouna
11th Edition
1119559901, 9781119559900
