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QUESTION 3 In the US, the Tax Cuts and Jobs Act (TCJA) became effective in 2018. This legislation cut the top corporate tax rate from

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QUESTION 3 In the US, the Tax Cuts and Jobs Act (TCJA) became effective in 2018. This legislation cut the top corporate tax rate from 35% to 21%. What is the likely impact on corporate capital structure? Will firms finance with less debt, more debt, or the same amount going forwards? a. More debt. b. Less debt C. The same amount of debt. d. It is not possible to determine - we will have to wait and see

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