Question: An important consideration for a corporation when determining its optimal capital structure is the tax shield created by using debt financing. The tax shield refers

An important consideration for a corporation when determining its optimal capital structure is the tax shield created by using debt financing. The tax shield refers to the taxes Available answer options Select only one option A A corporation saves by taking a tax credit for interest payments. B A corporation saves by taking a tax deduction for interest payments. C A bondholder saves compared to a stockholder, as interest payments are received tax-free but dividends are taxable income. D A corporation saves by taking a tax deduction when it repays the funds borrowed

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