Maurice Tutor

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Category > Economics Posted 13 May 2018 My Price 2.00

amount of money

What is the opportunity cost of (a) borrowed funds and (b) equity capital? Under current tax law, firms can record as an expense the opportunity cost of borrowed funds, but not equity capital. How does this tax law affect the amount of debt the firm wants to incur, compared to the amount of money it raises by selling equity?

 

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Maurice Tutor
(5)
Status NEW Posted 13 May 2018 02:05 PM My Price 2.00

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