Multiple Choice
Which of the following is the best definition of interest tax shield?
A) The tax saving attained by a firm from interest expense.
B) Termination of the firm as a going concern.
C) The value of the firm is independent of its capital structure.
D) A firm's cost of equity capital is a positive linear function of its capital structure.
E) Financial restructuring of a failing firm to attempt to continue operations as a going concern.
Correct Answer:
Verified
Correct Answer:
Verified
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