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Briefly state an implication of taxes on capital structure and a reason for why such an implication exists. Assume that capital markets are otherwise perfect

Briefly state an implication of taxes on capital structure and a reason for why such an implication exists. Assume that capital markets are otherwise perfect and limit your explanation to 30 words. (Your answer must be handwritten. If your answer is longer than 30 words, only the first 30 words will be graded.)

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