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Which of the following statements in relation to capital structure and interest tax shields is less likely to be true? a. The value of interest
Which of the following statements in relation to capital structure and interest tax shields is less likely to be true? a. The value of interest tax shields is determined only by the level of borrowings, the term and the interest rate b. Although higher debt levels will result in higher interest tax shields, the likely costs of financial distress will limit the borrowings offered to a firm by banks c. The appropriate discount rate to value future tax shields should be the borrowing rate d. The financing of operating assets with borrowings will result in an interest expense which is deductible for tax purposes e. Interest on borrowings to finance operating assets is likely to result in a tax shield if a company's return on assets exceeds the intaract rato an tho harraminae
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