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Holding other factors constant, how do you think corporate capital structures might change if the corporate income tax were abolished? Over time, institutional investorsespecially pension

Holding other factors constant, how do you think corporate capital structures might change if the corporate income tax were abolished?

Over time, institutional investorsespecially pension funds, which are effectively untaxed on their investment incomehave held an increasing percentage of common stock. What do you think this trend implies for corporate leverage?

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