Question: Holding all other things constant, does a decrease in the marginal tax rate for a firm provide incentive for the firm to increase or decrease

Holding all other things constant, does a decrease in the marginal tax rate for a firm provide incentive for the firm to increase or decrease its use of debt?

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The aftertax cost of debt for the firm is equal k Debt x 1 t We can then calcu... View full answer

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