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The Value of the Interest Tax Shield is described by all of the following except: By increasing the cash flows paid to debt holders through
The Value of the Interest Tax Shield is described by all of the following except: By increasing the cash flows paid to debt holders through interest payments, a firm reduces the amount paid in taxes The increase in total cash flows paid to investors is the interest tax shield Cash flows of the levered firm are equal to the sum of the cash flows from the unlevered firm plus the interest tax shield The interest tax shield results in more taxes being paid to the government
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