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Debt has a tax advantage over equity in most markets, in that the interest payable is deductible before taxes are calculated. Discuss what you think
Debt has a tax advantage over equity in most markets, in that the interest payable is deductible before taxes are calculated. Discuss what you think would happen if this advantage to debt were removed and neither debt nor equity had any tax deductibility. Should companies still have debt in their capital structure?
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