1-The interest tax shield is a key reason why: Group of answer choices ...
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Accounting
1-The interest tax shield is a key reason why:
Group of answer choices
1-the required rate of return on assets rises when debt is added to the capital structure.
2-the value of a levered firm is greater than the value of an unlevered firm.
3-the net cost of debt to a firm is generally less than the cost of equity.
4-firms prefer equity financing over debt financing.
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