Question
Effective January 1, 2018, U.S. corporate tax rates were reduced from a maximum 35% to 21%. What impact does this have on a companys WACC?
Effective January 1, 2018, U.S. corporate tax rates were reduced from a maximum 35% to 21%.
What impact does this have on a companys WACC?
Does it have a greater impact on companies that use a high level of debt than on companies that use a lower level of debt? Explain.
Is it likely to have an impact on a companys capital structure, i.e., might a company change its weighting of debt vs equity?
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The VAR Implementation Handbook
Authors: Greg Gregoriou
1st Edition
007161513X, 978-0071615136
