Question: By increasing its interest expense by $ 4 , 8 0 0 last year, a firm was able to reduce its taxes by $ 1

By increasing its interest expense by $4,800 last year, a firm was able to reduce its taxes by $1,200. This $1,200 amount is called the
Multiple Choice
current tax yield.
tax-loss interest.
interest credit.
interest tax shield.
homemade leverage shield.
 By increasing its interest expense by $4,800 last year, a firm

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