Why is debt financing said to include a tax shield for the company?
A. Taxes are reduced by the amount of the debt.
B. Taxes are reduced by the amount of the interest.
C. Taxable income is reduced by the amount of the interest.
D. Taxable income is reduced by the amount of the debt.
Answer: C
You might also like to view...
The cost of goods sold and the SGA expenses of an organization are $60 million and $25 million, respectively. Its other operating expenses amount to $15 million
Determine the total operating income of the organization if it generates sales revenues of $150 million. A) $100 million B) $90 million C) $75 million D) $60 million E) $50 million
One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a positively oriented relevant brand need?
A) problem removal B) social approval C) normal depletion D) problem avoidance E) incomplete satisfaction
A ____ system of production control is paced by product demand
a. EOQ b. ABC c. push d. pull
When does a writer include a Works Cited in a formal proposal?