Question: Why is debt financing said to include a tax shield for the company? a) Taxes are reduced by the amount of the debt. b) taxable

Why is debt financing said to include a tax shield for

Why is debt financing said to include a tax shield for the company? a) Taxes are reduced by the amount of the debt. b) taxable income is reduced by the amount of interest paid c) taxes are reduced by the same amount as the interest d) taxable income is increased by the amount of debt

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