Academic studies have estimated that the tax benefit of debt realized by firms is approximately
A) 10% of firm value.
B) a 10% reduction in WACC.
C) a 10% reduction in the cost of debt
D) 10% of debt value.
Answer: A
Academic studies have estimated that the tax benefit of debt realized by firms is approximately
A) 10% of firm value.
B) a 10% reduction in WACC.
C) a 10% reduction in the cost of debt
D) 10% of debt value.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.