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What is an interest tax shield ,and how does this affect the value of company? |
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Answer» [4], an interest tax shield is defined as: tax SAVINGS resulting from deductibility of interest payments. ACCORDING to Damodaran [5], the interest tax shield is EXPRESSED in a similar VEIN: Interest is tax-deductible, and the resulting tax savings reduce the cost of borrowing to firms. PLEASE MARK AS BRAINLIST ANSWER |
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