The firm cant use interest tax shields unless it has (taxable) income to shield. What does this

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“The firm can’t use interest tax shields unless it has (taxable) income to shield.” What does this statement imply for debt policy? Explain briefly.

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Principles of Corporate Finance

ISBN: 978-0077404895

10th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen

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Question Posted: Dec 31, 2012 09:44 AM

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The firm cant use interest tax shields unless it has (taxable) income to shield. What does this

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A firm with no taxable income saves no taxes by bo...View the full answer

Principles of Corporate Finance

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