Which One of the Following Represents the Present Value of the Interest

question 39

Multiple Choice

Which one of the following represents the present value of the interest tax shield?

• A)D / T_c
• B)D ´(1 - T_c)
• C)D/(1 - T_c)
• D)D - D(T_c)
• E)T_C ´D

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Definitions:

Opportunity

A set of circumstances that makes it possible to do something, often leading to new possibilities or growth.

General Price

The common or prevailing price level for goods or services in a market.

Goods And Services

The tangible products and intangible activities that fulfill the wants and needs of consumers.

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in purchasing power of the currency.