$7$:$55$

$||||$

$$

~Gustavo

$5/13/25,7$:$59$ PM

$3$

TB MC Qu$.16-26$ The existence of the interest...

The existence of the interest tax shield is a key reason why:

Multiple Choice

the required rate of return on assets nises when debt is added to the caplesis structure.

the value of an unievered correany is equal to the value of a levered company

the net cost of debt is generally less than the cost of equity.

the cost of deft is eoual so the cost of equity for a levered company.

comparies prefer equity financing over debt financing.