Question: 6. Why is debt financing said to include a tax shield for the company? (a) (b) (c) (d) Taxes are reduced by the amount of

6. Why is debt financing said to include a tax shield

6. Why is debt financing said to include a tax shield for the company? (a) (b) (c) (d) Taxes are reduced by the amount of the debt Taxes are reduced by the amount of the interest Taxable income is reduced by the amount of the interest Taxable income is reduced by the amount of the debt

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