What is the interest tax shield? A) The tax increase to deter compani

What is the interest tax shield?

A) The tax increase to deter companies from using too much debt
B) The amount by which taxes are reduced due to interest tax deductibility
C) The tax benefit given to companies for buying bonds
D) The benefit from not reporting interest income
E) The decrease in taxes paid on interest earned by the firm on its cash reserves

ANSWER

B