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: Flex 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

Biology
1.2K views

For example, a vegetable market in Muscat disposes 150 kg of rotten vegetables daily basis. Write...

Basic Math
1.2K views

You conduct a study to determine the impact that varying the amount of noise in an...

General Management
1.2K views

Assess the configuration of your local airport or some airport with which you can become familiar? How...

General Management
1.2K views

Identify several areas where artificial intelligence (AI) and machine learning (ML) are having practical consequences, through your...

Accounting
1.2K views

a. Rory Inc. is a manufacturer of windows. Rory primarily sells to residential builders who take...

Physics
1.2K views

Two mirrors are inclined at an angle 9 as shown in the figure Light ray...

Calculus
1.2K views

Find f x if x 4 f x In

Algebra
1.2K views

Find the values of for which the determinant is zero Enter your answers as a...

Accounting
1.2K views

All 15 steps are for a single problem. Thank You Check m Required information...

Accounting
1.2K views

Last year Burford Company's cash account decreased by $19,000. Net cash used in investing activities...

Accounting
1.2K views

Direct Disk Drive Company operates a computer disk manufacturing plant. Direct materials are addod at...

Accounting
1.2K views

The following data concerning the conventional retail inventory method are taken from the financial records...