What is the expression for the present value of tax shields for a company that targets a fixed debt-to-value ratio?

A.PVTS = VL - VU

B.PVTS = T x D

C.PVTS = (VL - VU)/kU

D.PVTS = T x D/kD

True or False. With the assumption of a fixed debt-to-value ratio, proposition II (for the return to levered equity) is the same as M&M with no taxes.

True

False