Managers Should Make Use of the Interest Tax Shield If

question 6

Multiple Choice

Managers should make use of the interest tax shield if a firm has ________.

• A) consistent taxable income
• B) volatility in taxable income
• C) consistent dividend payments
• D) low tax rates

---

Definitions:

Belief

An acceptance that something exists or is true, especially without proof, often based on personal conviction or trust.

Honesty

The quality of being truthful and free from deceit in principles, intentions, and actions.

Routine Activities Perspective

A theory that considers how deviant behavior, such as crime and substance abuse, emerges from the routines of everyday life.

Subcultures

Groups within a larger culture that distinguish themselves through a unique set of norms, values, beliefs, or practices.