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The CFO of Bayern Mechanic is advocating for increasing debt in the capital structure of the firm by taking out a bank loan and repurchasing

The CFO of Bayern Mechanic is advocating for increasing debt in the capital structure of the firm by taking out a bank loan and repurchasing shares of stock. If Bayerns current income tax rate is expected to decrease by 50%, will the capital structure change become more or less beneficial to the firm?

The capital structure change will be more beneficial
The benefit of the capital structure change is the same
The capital structure change will be less beneficial

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