Question
Which of the following is able to explain why debt financing includes a tax shield? Taxes are reduced by the amount of the interest. Taxable
Which of the following is able to explain why debt financing includes a tax shield?
| Taxes are reduced by the amount of the interest. | ||
| Taxable income is reduced by the amount of the debt. | ||
| Taxable income is reduced by the amount of the interest. | ||
| Taxes are reduced by the amount of the debt. |
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Financial Management Principles And Practices
Authors: Timothy J. Gallagher
9th Edition
1954156103, 978-1954156104
