Which of the Following Will Tend to Diminish the Benefit

Multiple Choice

Which of the following will tend to diminish the benefit of the interest tax shield given a progressive tax rate structure?
I.a reduction in tax rates
II.a large tax loss carryforward
III.a large depreciation tax deduction
IV.a sizeable increase in taxable income

A) I and II only
B) I and III only
C) II and III only
D) I, II, and III only
E) I, II, III, and IV