How may corporate taxes make a firms borrowing decision, Finance Basics

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How may corporate taxes make a firms borrowing decision

Question: 1. How may corporate taxes make a firm's borrowing decision relevant? Why might debt financing increase the total cash flows that a firm distributes to its debt and equity security holders?

2. What empirical evidence supports the tradeoff theory of capital structure?

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Finance Basics: How may corporate taxes make a firms borrowing decision

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