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arsen [322]
1 year ago
15

other things held constant, the lower a firm's tax rate, the more logical it is for the firm to use debt. true false

Business
1 answer:
olga_2 [115]1 year ago
8 0

The tax shelter from debt is less valuable as the lower the tax rate. Consider the WACC's debt service costs: rd (1-Tax rate). The cost of debt is not reduced as much when the Tax rate is low as it is when the Tax rate is high. hence, the given statement is False.

<h3>What is the tax rate?</h3>

The tax rate in a tax system is the proportion at which a company or individual is taxed. Statutory, average, marginal, and effective tax rates are just a few of the ways that can be displayed.

Hence, The cost of debt is not reduced as much when the Tax rate is low as it is when the Tax rate is high. hence, the given statement is False.

Learn more about tax rate:

brainly.com/question/509359

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3 years ago
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Explanation:

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Hey! I need definitions to the following.
kap26 [50]

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3 0
2 years ago
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Answer:

<u>Foster Manufacturing </u>

<u>Journal Entries</u>

<u>Sr. No                       Particulars                       Debit           Credit</u>

1                    Work in Process Job No. 221        1200

                    Work in Process Job No. 222      1700

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         Work in Process Job No. 221 MOH                          1540

Job 221 completed and transferred to finished goods.

                   

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