Present value of the associated interest tax shield

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Reference no: EM131509296

When a firm uses a permanent debt, the present value of the associated interest tax shield: A) increases with the interest rate of the debt. B) decreases with the interest rate of the debt. C) does not depend on the interest rate of the debt. D) does not depend on the interest rate of the debt only if the debt is risk free.

Reference no: EM131509296

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