Interest subsidy

Definition:

The value of a firm's deduction of the interest payments on its debt from its earnings before calculation of its tax bill under current tax law.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Project

The asset constructed with or owned via a project financing, which is expected to produce cash flow at a debt-service coverage ratio sufficient to repay the project financing.

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