The interest tax shield
A) does not affect the WACC.
B) makes it less costly to distribute cash to the security holder through interest payments than through dividends.
C) is given by D × (1 - t).
D) b and c.
Answer: B
The interest tax shield
A) does not affect the WACC.
B) makes it less costly to distribute cash to the security holder through interest payments than through dividends.
C) is given by D × (1 - t).
D) b and c.
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