Why Is Debt Financing Said to Include a Tax Shield

question 66

Multiple Choice

Why is debt financing said to include a tax shield for the company?

• A)taxes are reduced by the amount of the debt
• B)taxes are reduced by the amount of the interest
• C)taxable income is reduced by the amount of the debt
• D)taxable income is reduced by the amount of the interest

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Definitions:

Women's Movement

A series of campaigns for reforms on issues such as reproductive rights, domestic violence, maternity leave, equal pay, women's suffrage, and sexual harassment.

Psychological Principles

Fundamental concepts or truths about human behavior and mental processes that are based on psychological research and theory.

Theoretical Diversity

The existence of multiple theories or approaches within a field, highlighting a range of perspectives and methodologies.

Psychology

The scientific study of the mind and behavior, encompassing various areas such as cognitive, social, developmental, and clinical psychology.