Optimum Capital Structure? Is it possible?


Hello there, It's Carolina here! Is there such a thing as the optimum capital structure? How are equity, tax, and debt interrelated when it comes to tax planning and funding a company? Let's start with Taxes... The Income tax schedule forecasts a company’s tax obligations. And...? And taxes are paid based on Earnings. And...? And earnings are reduced by interest but not by dividends, right? That's the point... When companies decide to exchange equity for debt, they are changing the way they...