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Capital Structure Decision With Corporate Taxes

  • Harold BiermanJr.

Abstract

Assume that there are corporate taxes (tc = .35) but no investor taxes. Consistent with U.S. tax laws interest gives rise to a tax deduction but dividends on stock do not. Again we assume there are no costs of financial distress.

Keywords

Capital Structure Financial Distress Common Stock Share Repurchase Convertible Bond 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media Dordrecht 2003

Authors and Affiliations

  • Harold BiermanJr.
    • 1
  1. 1.The Johnson Graduate School of ManagementCornell UniversityIthacaUSA

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