Question: Consider the following formula: V L = V U + c D The term c D represents _______. A. the present value of the interest

Consider the following formula: VL = VU + cD The term cD represents _______.
  • A.

    the present value of the interest tax shield

  • B.

    the value of the firm with leverage

  • C.

    the present value of future interest payments

  • D.

    the annual interest tax shield

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