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Which of the following will tend to diminish the benefit of the interest tax shield given a progressive tax rate structure?

I. a reduction in tax rates

II. a large tax loss carryforward

III. a large depreciation tax deduction

IV. a sizeable increase in taxable income

I and II only

I and III only

II and III only

I, II, and III only

I, II, III, and IV

Basic Finance, Finance

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  • Reference No.:- M941574

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