Managers Should Make Use of the Interest Tax Shield If

question 40

Multiple Choice

Managers should make use of the interest tax shield if the firm has:

• A)consistent taxable income.
• B)volatility in taxable income.
• C)consistent dividend payments.
• D)low tax rates.
• E)many tangible assets.

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Definitions:

Manipulation

The passive movement of a joint to determine the range of flexion and extension.

Upper Extremities

Refers to the region of the human body that includes the arms, wrists, hands, and fingers.

Lower Extremities

Referring to the lower limbs of the body, including the feet, ankles, legs, and thighs.

Trunk

The main body or stem of a tree, or the main part of the human body excluding the head, neck, and limbs.