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    Paying Interest Reduces the Taxes Owed by a Firm
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Paying Interest Reduces the Taxes Owed by a Firm

Question 40

Question 40

Multiple Choice

Paying interest reduces the taxes owed by a firm.Which one of the following terms applies to this relationship?


A) financial risk
B) M&M Proposition I
C) interest tax shield
D) static theory of interest rates
E) homemade leverage

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