Question: The interest tax shield is a key reason why Multiple Choice firms prefer equity financing over debt financing. the value of an unlevered firm is

The interest tax shield is a key reason why
Multiple Choice
firms prefer equity financing over debt financing.
the value of an unlevered firm is equal to the value of a levered firm.
the net cost of debt to a firm is generally less than the cost of equity.
firms tend to minimize their borrowing.
the cost of debt is equal to the cost of equity for a firm with a debt-to-equity ratio of 1.

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