Examlex
Use OR when ____.
Interest Tax Shield
The reduction in income taxes that results from taking an allowable deduction for interest expenses.
Interest Tax Shield
The decrease in income taxes that occurs by subtracting a permitted deduction, like debt interest, from taxable income.
Levered Firms
Companies that employ debt (loans or bonds) in their capital structure alongside equity (stocks).
Unlevered Firms
Companies that operate without using debt or borrowed capital in their capital structures.
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