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    Fundamentals Of Corporate Finance Study Set 21
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    Exam 16: Financial Leverage and Capital Structure Policy
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    The Interest Tax Shield Has More Value When the Amount
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The Interest Tax Shield Has More Value When the Amount

Question 171

Question 171

Multiple Choice

The interest tax shield has more value when the amount of debt is _____ and the tax rate is _____.


A) Low; zero.
B) Low; high.
C) High; zero.
D) High; high.
E) Low; low.

Correct Answer:

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