The Present Value of the Interest Tax Shield Is Expressed

question 83

Multiple Choice

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

• A) TCD/RA.
• B) VU + TCD.
• C) TCDRA.
• D) [EBIT(TCD)]/RA.
• E) TCD.

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Definitions:

Fourteenth Amendment

An amendment to the U.S. Constitution, granting citizenship to all persons born or naturalized in the United States and guaranteeing all citizens equal protection under the law.

Incorporation Theory

A principle in United States law that ensures states cannot enact laws that take away the constitutional rights of American citizens that are enshrined in the Bill of Rights.

Bill of Rights

The first ten amendments to the United States Constitution, guaranteeing specific freedoms and protections to American citizens.

Incorporation Doctrine

The legal concept that the Bill of Rights applies to state governments as well as the federal government through the Fourteenth Amendment's Due Process Clause.