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When the corporate tax rates increase and debt levels increase, what will be the impact on the PV of future interest tax savings from using

When the corporate tax rates increase and debt levels increase, what will be the impact on the PV of future interest tax savings from using debt finance?

Question 7 options:

There will be an decrease in the PV of the interest tax shield

There will be an increase in the PV of the interest tax shield

Cannot be determined without further information.

There will be no impact on the PV of the interest tax shield

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