Which of the following statements is FAL.SE? In general, the gain to investors from the tax deductibility of interest payments is referred to as the interest tax shield. A firm recelves a tax benefit only if it is paying taxes in the first place. Because corporations pay taxes on their profits after interest payments are deducted, interest expenses reduce the amount of corporate tax firms must pay To the extent that a firm has other tax shields, its taxable earnings will be increased and it will rely more heawlly on the interest tax shield