The relative tax benefit from financing via debt rather than equity. This benefit is due to the tax deductibility of interest as compared to dividends.
Debt Tax Shield
Posted: August 6, 2009Topics: Glossary
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Will Dearman is the Editor of TheStrategyBlog. His professional experience includes acquiring and later selling a portfolio of Internet-based companies as well as working as a credit underwriter in Bank of America's commercial middle market bank. His interests include finance, innovation, strategy and social technology. Find him on Twitter!