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    Corporate Finance
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    Exam 15: Debt and Taxes
  5. Question
    Consider the Following Formula: VL = VU + τCD
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Consider the Following Formula: VL = VU + τCD

Question 81

Question 81

Multiple Choice

Consider the following formula: VL = VU + τcD
The term τcD represents:


A) the present value of the interest tax shield.
B) the value of the firm with leverage.
C) the present value of the future interest payments.
D) the interest tax shield each year.

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