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Is it true that corporate income taxes are normally computed as a fixed proportion of earnings before taxes.. Because of this fixed proportion tax rate the corporate income taxes will tend to reduce the volatility of shareholder returns?

Futhermore is it true that from a shareholders in a bidding firm a takeover should proceed if the sum of the values of the target firm and the bidder acting as independent entities is less than the combinded value of the two firms following the takeover?

Financial Management, Finance

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