Managers Should Make Use of the Interest Tax Shield If

question 40

Multiple Choice

Managers should make use of the interest tax shield if the firm has:

• A)consistent taxable income.
• B)volatility in taxable income.
• C)consistent dividend payments.
• D)low tax rates.
• E)many tangible assets.

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Definitions:

Fair Play

Adherence to rules or standards of decency in conduct, especially in a competitive situation.

Ethics

The branch of philosophy that deals with moral principles, governing a person's behavior or conducting an activity.

Motivation

The psychological factors that drive a person to action or to pursue goals.

Aristotelian Approach

A philosophical methodology based on the teachings of Aristotle, focusing on the concrete and particular, emphasizing purpose, and considering the ethical implications of actions.