What is meant by a firm's "Interest Tax Shield?"

It is the additional cash flow that the firm generates due to its use of debt.

It is the additional taxes that the firm must pay due to its use of debt.

It is the extra income that the firm receives by earning interest on marketable securities.

It is the expected cost of financial distress for a firm due to its use of debt.

It represents the loss of income for a firm that must make interest payments on debt.