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The tax deductibility of interest expense all responses are correct since the tax treatment of interest expense depends on the firm's situation and local state
The tax deductibility of interest expense
all responses are correct since the tax treatment of interest expense depends on the firm's
situation and local state tax laws
reduces the effective borrowing rate on an aftertax basis
can sometimes increase the effective borrowing rate on an aftertax basis
has no effect on a firm's borrowing rate since tax treatment of interest expense is the same
as that of dividends
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