In december 2017 president trump signed the tax cuts and, Ask an Expert

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In December 2017, President Trump signed the Tax Cuts and Jobs Act. A primary piece of this legislation was cutting the top corporate tax rate from 35% to 21%. What is the likely impact of this tax cut on corporate capital structure? Will firms likely finance with more debt, less debt, or the same amount of debt going forwards?

a. More debt. b. Less debt. c. The same amount of debt. d. It is not possible to determine - we will have to wait and see.

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Financial Management, Finance

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