These two conditions keep the cost of capital low, as f (debt fraction is high) and t (tax rate) is high.
Is it good to be in a high debt position in a high taxing country?
High debt is never good,
Reply:Only if you get a tax break for the cost of the debt. Not sure how you figure it keeps the cost of capital low...
Reply:you'll find that either your teacher or the book you got that from is full of it,,
if i can make a higher return on my money than if I were to use it to pay any loans I have, that is when debt is good
if i can't work or sell my product, debt of any kind is bad
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