Question: If the tax laws changed so that only $ 0 . 5 0 out of every $ 1 . 0 0 of interest paid by
If the tax laws changed so that only $ out of every $ of interest paid by a corporation was allowed as a taxdeductible expense, it would probably encourage companies to
Select one:
a use more debt financing than they presently do other things held constant
b use less debt financing than they presently do other things held constant
c keep the amount of debt financing unchanged
d cease using debt entirely
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