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Does the U.S. tax structure influence a firm's willingness to finance with debt? Why? a Yes; it is added to the Paid in Capital in

Does the U.S. tax structure influence a firm's willingness to finance with debt? Why?

a

Yes; it is added to the Paid in Capital in Excess of Par

b

No; The interest increases the firm's solvency write off.

c

Yes; The interest on the debt is deductible on the Income Statement.

d

No; The use of debt will always reduce the ROE on the tax return.

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