Question: Consider the following formula: V L = V U c D r D r D The term c D r D r D represents: A

Consider the following formula:
VL=VUcDrDrD
The term cDrDrD represents:
A. the value of the firm with leverage.
B. the present value of the interest tax shield.
C. the present value of the future interest payments.
D. the interest tax shield each year.
Consider the following formula: V L = V U c D r D

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