1. From a tax perspective, would you expect large, stable firms to be predominantly held by pension funds or by high-tax individuals? Would you expect young, growing firms to be predominantly held by pension funds or by high-tax individuals?
2. Is it more critical for the high-tax firm or the low-tax firm to finance itself correctly?
3. In a risk-neutral world, would a high-tax investor be satisfied with a lower rate of return on capital gains?