Any Financial Benefit Derived from the Interest Tax Shield Accrues

question 77

Multiple Choice

Any financial benefit derived from the interest tax shield accrues to the:

• A) bondholders.
• B) shareholders.
• C) bondholders and shareholders equally.
• D) shareholders and the federal government.

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Definitions:

Incidental Beneficiary

A person who indirectly benefits from the fulfillment of a contract or agreement but has no legal right to enforce the agreement.

Statute of Frauds

A rule of law mandating specific agreements must be documented with the signatures of those participating to be valid and binding.

Oral Evidence

Testimony given by a witness or party during a trial based on what the witness has heard or personally experienced.

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be enforceable.