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Describe three communication methods and give examples of each.
Interest Tax Shield
The decrease in income tax owed that occurs when interest payments on borrowed funds are subtracted from taxable income.
Coupon Rate
The annual interest rate paid on a bond, expressed as a percentage of the bond's face value, generating regular income for investors.
WACC
Stands for Weighted Average Cost of Capital, a measure of a firm's cost of capital in which each category of capital is proportionately weighted.
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