Consider the Following Formula

question 67

Multiple Choice

Consider the following formula:
The term τ_cD represents

• A) the present value of the interest tax shield.
• B) the value of firm with leverage.
• C) the preset value of the future interest payments.
• D) the interest tax shield each year.

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Definitions:

Instinct Approach

A theory in psychology that suggests innate, biologically driven behaviors are the primary motivators for human actions.

Motivation

A psychological force that compels you to take action toward achieving your goals.

Kinsey

An American biologist and sexologist who is known for his research on human sexuality in the mid-20th century.

Intrinsic And Extrinsic Motivation

Describes two types of motivation where intrinsic refers to doing something because it is inherently interesting or enjoyable, and extrinsic refers to doing something for external rewards or to avoid punishments.