The interest tax shield is equal to the:

Name: The interest tax shield is equal to the:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The interest tax shield is calculated as the product of the interest expense and the tax rate applicable to the company/entity. This is because the interest paid on debt is tax-deductible, which reduces the company's taxable income and results in a lower tax liability. Therefore, the interest tax shield is the tax benefit that a company receives from the tax-deductibility of interest payments.

The Interest Tax Shield Is Equal to The