Interest Tax Shield

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Interest tax shield

The reduction in income taxes that results from the tax-deductibility of interest payments.

Interest Tax Shield

A reduction in tax liability coming from the ability to deduct interest payments from one's taxable income. For example, a mortgage provides an interest tax shield for a property buyer because interest on mortgages is generally deductible. An interest tax shield may encourage a company to finance a project through debt because dividends paid on stock issues are never deductible.

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No references found			Using the procedure in Table I, but including investor taxes, gives the value shown as the second term in Equation (A3) as the value of the interest tax shield. Tax-adjusted discount rates with investor taxes and risky debt by Cooper, Ian A.; Nyborg, Kjell G. / Financial Management firms, which is consistent with the argument that firms that hedge bankruptcy risk can increase leverage and make greater use of the interest tax shield from debt. The value effects of foreign currency and interest rate hedging: the ... by Belghitar, Yacine; Clark, Ephraim; Judge, Amrit / International Journal of Business 268 305 equals the NPV of ATNCF, U plus Debt Interest Tax Shield 7 ATNCF, L 50 NPV @ [k. Discount rates for consistent valuation of various measures of book ... by Bodington, Jeffrey C. / Appraisal Journal			Interest Payable Interest Payment Interest payments interest rate Interest Rate Adjustment Period Interest Rate Agreement Interest Rate Anchor interest rate cap Interest Rate Ceiling Interest Rate Decrease Cap Interest Rate Floor Interest Rate Future Interest Rate Futures Contract Interest Rate Increase Cap Interest Rate Index Interest Rate on Debt Interest Rate Option Interest Rate Parity Interest Rate Parity Line Interest Rate Parity Theorem Interest Rate Risk Interest Rate Swap Interest Received Interest Sensitive Stock Interest Subsidy Interest Tax Shield Interest-Bearing Eligible Liabilities Interest-Free Interest-Only interest-only loan Interest-Only Mortgage interest-only securities Interest-Only Strip Interest-Rate Risk Interest-sensitive insurance policy Interest-Sensitive Stock Interested Shareholder Interets a payer Interfund transactions Intergovernmental Authority on Drought and Development Intergovernmental Conference Intergovernmental Council of Copper Exporting Countries Interim Dividend interim financing Interim Rate of Return Interim Report Interim Statement interim use Interlocking Directorate Interlocking Directorates interlocutory decree			Interest Rate Risk Management Interest Rate Risks Interest Rate Sensitive Liabilities Interest Rate Sensitivity Interest Rate Support Interest rate swap Interest rate swap Interest rate swap Interest rate swap Interest rate swaps Interest rates Interest rates Interest rates Interest rates Interest rates Interest Received Interest reipublicae ne maleficia remaneant impunita Interest reipublicae quod homines conserventur Interest reipublicae res judicatas non rescindi Interest reipublicae suprema hominum testamenta rata haberi Interest reipublicae ut carceres sint in tuto Interest reipublicae ut qualibet re sua bene utatur Interest reipublicae ut sit finis litium Interest Sensitive Interest Sensitive Stock Interest Sensitive Stocks Interest Sensitive Whole Life Interest Service Coverage Ratio Interest Subsidies Interest subsidy Interest Tax Shield Interest Tax Shields interest tests Interest Withholding Tax Interest, Commission, Extras Interest, Dividend, or Net Rental Income Interest-Adjusted Cost Interest-Adjusted Costs Interest-Adjusted Net Cost Interest-Based Locality interest-bearing interest-bearing Interest-Bearing Eligible Liabilities Interest-Bearing Eligible Liability Interest-Bearing Real Estate Trust Account Interest-Charge Domestic International Sales Corporation interest-free interest-free Interest-Free Season Ticket Loan interest-group interest-group interest-group interest-only interest-only interest-only interest-only Interest-only loan Interest-Only Loans Interest-only mortgage Interest-Only Mortgages interest-only securities

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