Corporate tax on the wacc of businesses


Question 1: What are the effects of a corporate tax on the WACC of businesses?

Question 2: Is minimizing WACC by having a largely debt-based capital structure a high risk strategy, given the threat of bankruptcy in an overleveraged business? Explain.

Question 3: What are extraneous factors which impact the ability of a business to radically after its debt-equity mix?

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Finance Basics: Corporate tax on the wacc of businesses
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