Quiz Ch 03 – T/F Tax Law Impact on Debt Financing Strategies

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: In the event that tax laws were amended to permit a tax-deductible expense of $0.50 for every $1.00 of corporate interest paid, it would likely incentivize companies to increase their utilization of debt financing, assuming other factors remain constant.

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  • Search Terms: a. b. false true $. a allowed as by changed companies constant. corporation debt do, encourage every expense, financing held if interest laws more of other out paid presently probably so tax tax-deductible than that the they things this to use was were would
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