The depreciation tax shield equals the amount of the depreciation expense multiplied by the firm's tax rate.

Name: The depreciation tax shield equals the amount of the depreciation expense multiplied by the firm's tax rate.
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This is a correct statement. The depreciation tax shield is the tax savings generated by deducting depreciation expenses from taxable income. It is equal to the amount of the depreciation expense multiplied by the firm's tax rate.

The Depreciation Tax Shield Equals the Amount of the Depreciation