The interest tax shield is best defined as:

Multiple Choice

• A.Financial restructuring of a failing firm to attempt to continue operations as a going concern.

• B.Termination of the firm as a going concern.

• C.The tax saving attained by a firm from interest expense.

• D.The value of the firm is independent of its capital structure.

• E.A firm's cost of equity capital is a positive linear function of its capital structure.