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Issue:

Business

 

Written by:

Marie S

 

Date added:

February 20, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 912

 

Was viewed:

8141 times

 

Rating of current essay:

 
Essay content:

However it is dependant on the debt-equity ratio (capital structure) of the firm as well as the dividend policy (payout policy) of the firm. If the firm has adequate unsheltered taxable income, increasing debt increases interest and lowers taxes. This is because interest payable is deducted from EBIT before taxes are calculated...
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However it is dependant on the debt-equity ratio (capital structure) of the firm as well as the dividend policy (payout policy) of the firm. If the firm has adequate unsheltered taxable income, increasing debt increases interest and lowers taxes. This is because interest payable is deducted from EBIT before taxes are calculated...
displayed 300 characters

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