If you were given the opportunity to pay off all interest-bearing debt in your company, would you do it?
Before answering this question, you have to think about the tax-saving effects of the tax shield. In finance, this refers to the effect that interest expenses resulting from interest-bearing debt has on the present value of a business or company.
In corporate management, the relationship between interest-bearing debt and shareholders’ equity, is an important topic. Take this course to understand how the tax shield can be utilized in your corporate finance activities.
