Although the Value of an Additional Interest Tax Shield May

question 49

Multiple Choice

Although the value of an additional interest tax shield may be positive, firms may restrict borrowing if:

• A)The returns on the project are too high
• B)Their asset base is largely intangible
• C)Their asset beta is zero
• D)The borrowing increases their WACC

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Definitions:

Long Integer

A data type in programming that represents integer numbers with a larger storage space, allowing for a wider range of values.

Byte

A unit of digital information in computing and telecommunications that most commonly consists of eight bits.

Navigation Pane

A section or interface feature in software that allows users to locate and manage objects, documents, or pages within a system.

Decimal Places

The quantity of numbers located to the right of a decimal point in a numeral, denoting its level of accuracy.