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Describe a piece of capital a company might want to purchase by taking out a loan from a bank. Explain how having this new piece

  • Describe a piece of capital a company might want to purchase by taking out a loan from a bank.
  • Explain how having this new piece of capital would improve profits for the firm.
  • How does the real interest rate impact the firm's decision to take out the loan?
  • How does the corporate tax rate impact the firm's decision to take out the loan?

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