The Interest Tax Shield

question 21

Multiple Choice

The interest tax shield

• A) does not affect the WACC.
• B) makes it less costly to distribute cash to investors through interest payments than through dividends.
• C) is given as: D × (1 − t).
• D) Both B and C

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Definitions:

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception and inappropriate actions.

Dissociative Disorders

Mental health conditions that involve disruptions or breakdowns of memory, awareness, identity, or perception.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and behavioral patterns.

Schizophrenic

Relating to schizophrenia, a severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.