Corporate tax rate impact the level of interest rates

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Reference no: EM13721053

1. The coupon payments by corporations are tax favoured, do you agree with that?

2. If the corporate tax rate in U.S is lowered or raised, what impact might this have on debt financing? Would this change (lowering/raising) of a corporate tax rate impact the level of interest rates?

3. Should a firm favour any specific maturity range for its issued debt? What considerations might a firm undertake when determining 'what' maturity of debt to issue?

Reference no: EM13721053

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