Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1) how do cost of funds and taxes affect decisions

1) How do cost of funds and taxes affect decisions made by investors and the firm?...

50.1K

Verified Solution

Question

Finance

1) How do cost of funds and taxes affect decisions made byinvestors and the firm? Please explain 2) Since interest paymentsare fully deductible for tax purposes should a firm’s capitalstructure be all debt financed? Why & why not?

Answer & Explanation Solved by verified expert
4.5 Ratings (933 Votes)
1 Cost of funds and taxes affects decisions made by investors and the firms to a great extent Cost of funds include the cost of acquiring the funds that is common stock preference shares and debt There must be an optimum mix of all kind of funds The decision rest on the cost associated with various kind of funds Interest is    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

1) How do cost of funds and taxes affect decisions made byinvestors and the firm? Please explain 2) Since interest paymentsare fully deductible for tax purposes should a firm’s capitalstructure be all debt financed? Why & why not?

Other questions asked by students

Q

A single-phase transformer of 3 kVA, 60 Hz, has a voltage ratio on open circuit of...

Electrical Engineering
Q

Can Marta sue Chelene for fraudulent misrepresentation? Why or why not? What element ( or elements )...

Statistics
Q

A conducting ring is placed in a uniform magnetic field with its plane perpendicular to...

Physics
Q

What is the most specific name for the figure A a 0 B 0 b...

Geometry
Q

Question 5 If x x 4 g x x 7 and h z then f...

Basic Math
Q

27 Important factors that can cause supply curves to shift include input prices technology and...

Basic Math
Q

Given the Points J(-8, -2) and K(4,2) Find The slope of a line that is...

Basic Math
Q

A psychologist is studying the self image of smokers, as measured by the self-image (SI)...

Calculus
Q

Which of the following is a likely outcome of a property home inspection OA The...

Algebra
Q

E12-17A (Learning Objectives 2, 3: Distinguish among operating, investing, and financing activities for the statement...

Accounting
Q

Arab American University sells 5,000 season basketball tickets at $100 each for its 5- game...

Accounting
Q

The overhead cost variance is calculated as: Multiple Choice Standard applied overhead less budgeted overhead....

Accounting