which of the following statements is False? A. Future interest payments vary due to changes...
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Finance
which of the following statements is False?
A. Future interest payments vary due to changes the firm makes in the amount of debt outstanding, changes in the interest rate on debt, and the risk that the firm may default and fail to make an interest payment.
B. The tax deductability of interest lowers the effective cost of debt financing for the firm
C. The stream of interest payments can be discounted to the present value to determine the interest tax shield, which decreases the value of the firm.
D. When a firm uses debt the interest tax shield peovides corporate tax savings each year, lowering the government's stake in the company.
.
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