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Which of the following is true of interest expense? a) It is added to operating profit of a company. b) It increases the tax liability

Which of the following is true of interest expense?

a) It is added to operating profit of a company.

b) It increases the tax liability of a company.

c) It is a permanent expense of a company.

d) It helps in creating financial leverage for a company.

e) It is calculated based on the net income of a company.

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