MCQOPTIONS
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| 1. |
In MM Model with taxes, where 'r' is the interest rate, ‘D’ is the total debt and 't' is taxrate, then present valued shields would be: |
| A. | r×D×t |
| B. | r×D |
| C. | D×t |
| D. | (D× r)/(l-t). |
| Answer» D. (D× r)/(l-t). | |