A senior VP has proposed that we pay too much tax, so we should issue new debt

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A senior VP has proposed that "we pay too much tax, so we should issue new debt and use the proceeds to buy back common stock." What would be the logic behind this statement?

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Financial Decision Making For Engineers

ISBN: 9780300192186

1st Edition

Authors: Colin K. Drummond

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Question Posted: Apr 20, 2024 05:00 AM

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A senior VP has proposed that we pay too much tax, so we should issue new debt

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The logic behind the senior VPs proposal to issue new debt and use the proceeds to buy back common stock is based on several financial considerations ...View the full answer

Financial Decision Making For Engineers

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