Question 1050 Miller debt and taxes, interest tax shields, Miller and Modigliani, no explanation
In Miller's 1977 article 'Debt and Taxes', he argues that interest tax shields are likely to benefit who? Note that this 1977 article is contrary to his past research findings with Modigliani (1958), modern textbooks and common practice by valuers.
Miller (1977) concludes that the benefits of interest tax shields are likely to benefit: