If US Congress decided to LOWER the personal income tax rates would you expect:
dividend yields of US companies increase or decrease? (2-3 sentences)
cash-rich US companies to initiate more or less share buybacks? (2-3 sentences)
Why do some companies utilize lower D/V ratio than that predicted by the optimal trade-off between tax benefits of debt financing and losses due to financial distress? What type of companies would you expect to display such tendencies the most likely?