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The Present Value of the Interest Tax Shield Is Expressed

Question 19

Multiple Choice

The present value of the interest tax shield is expressed as:


A) (TC × D) /RA.
B) VU + (TC × D) .
C) [EBIT × (TC × D) ]/RU.
D) [EBIT × (TC × D) ]/RA.
E) TC × D.

Correct Answer:

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