I 3) Subsidized financing Example: Suppose that the U.S. government will provide Infosys Limited with a USD 100 million non- amortizing loan at a rate of 20% in U.S. dollars, even though corporate debt yields 30%. The firm pays a marginal corporate tax rate of 25% on its U.S. dollar profits, which is the same marginal tax rate in parent company profits. How can we incorporate this financing benefit?