Multiple Choice
The interest tax shield has no value for a firm when the:
I.the tax rate is equal to zero.
II.the debt-equity ratio is exactly equal to 1.
III.the firm is unlevered.
IV.a firm elects an all-equity capital structure.
A) I and III only
B) II and IV only
C) I,III,and IV only
D) II,III,and IV only
E) I,II,and IV only
Correct Answer:
Verified
Correct Answer:
Verified
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