hard question–Corporate tax paper

hard question–Corporate tax paper

Write a 2-3 page paper.  In your paper include the following:

• An explanation on how the corporate tax rate might affect corporate business practices and why is it important to have project valuation, cash flows, and risk analysis.

Include a title page and 3-5 references.  Please adhere to the Publication Manual of the American Psychological Association (APA), (6th ed., 2nd printing) when writing and submitting assignments and papers.

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How the corporate tax rate might affect corporate business practices

Corporate tax is a company tax which is usually imposed on legal entities. Corporate tax is a highly volatile source of revenue. Corporate taxes have an impact on the business costs. Increase in corporate taxes increases the business costs. Businesses usually pass the cost to their consumers by raising prices.  Corporate taxes affect business practices like the choice between debt, equity and even retained earnings that may be used to finance new investment. Corporate taxes favors debt financing over equity. Since the…

APA

682 words