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capital structure

  

Capital structure is important to many businesses. You have been promoted to be the  

CFO of a stable, but growing commodity business. You are looking to enhance the  

capital structure of the firm. Critically discuss the below based on the two readings  

provided The capital structure decisions the firms would make if it moved from a country  

of high taxes, to a country with no taxes. In your answer provide equations and  

diagrammatic illustrations of the effect. Clearly explain the key points on your diagrams  

and what assumptions are required. 

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