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Interest Tax Shield
A reduction in taxable income that results from deducting interest payments, decreasing overall tax liability.
Debt-Equity Ratio
A financial indicator showing the relationship between borrowed funds and equity in a company's asset financing.
Taxable Income
The portion of an individual's or company's income used to determine how much tax will be owed to the government.
Interest Tax Shield
The reduction in income taxes that results from taking an allowable deduction for interest expenses.
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