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

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: The exclusion of 70% of interest income from taxable income for corporations acts as an incentive for companies to utilize more debt financing than they would without this provision in the tax law.

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  • Search Terms: a. b. false true % absence by corporations debt encourages excluded fact finance firms from in income interest is its law more of provision. received tax taxable than that the they this to with would
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