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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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