e effect of financial distress and taxation on gearing? A. Both constrain gearing B. The tax constrains gearing; financial distress pushes for increased gearing C. The tax pushes for increased gearing; financial distress constrains gearing D. Both push for increased gearing
e effect of financial distress and taxation on gearing? A. Both constrain gearing B. The tax constrains gearing; financial distress pushes for increased gearing C. The tax pushes for increased gearing; financial distress constrains gearing D. Both push for increased gearing
Chapter1: An Introduction To Taxation And Understanding The Federal Tax Law
Section: Chapter Questions
Problem 34DQ
Related questions
Question
1.
What is the effect of financial distress and
A.
Both constrain gearing
B.
The tax constrains gearing; financial distress pushes for increased gearing
C.
The tax pushes for increased gearing; financial distress constrains gearing
D.
Both push for increased gearing
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