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Commerce · Q1136

Financial Management

Graduate and Post Graduate · Commerce · question 1136

Q1136

In MM Model with taxes, where 'r' is the interest rate, 'D' is the total debt and 't' is tax rate, then present valued shields would be:

A.
r × D × t
B.
r × D
C.
D × t
Answer
D.

Answer: Option C

Solution

Answer: Option C
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