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

Question

Quizplus · Accepted Answer

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

The Interest Tax Shield