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The proposed 2022 tax changes would increase the maximum corporate tax rate from 21% to 26.5%. Following the path set forth in Modigliani-Miller Proposition #1,
The proposed 2022 tax changes would increase the maximum corporate tax rate from 21% to 26.5%. Following the path set forth in Modigliani-Miller Proposition #1, how would that affect capital structure: more or less debt financing? And following up on that answer, would there be more or fewer bankruptcies in the future because of that?
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