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    Contemporary Financial Management Study Set 2
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    Exam 15: Capital Structure Concepts
  5. Question
    The Tax Deductibility of the Interest Payments on Corporate Debt
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The Tax Deductibility of the Interest Payments on Corporate Debt

Question 31

Question 31

Multiple Choice

The tax deductibility of the interest payments on corporate debt is known as ____.


A) the tax structure
B) the tax shield
C) the optimal capital structure
D) Section 402a of the IRS tax code

Correct Answer:

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