Corporate Finance Essay

Read the following 4 Economist articles (attached)

(i) ‘Debt is Good for You’ (dated 01/25/2001)

(ii)‘Debtors’ Prison’ (dated 02/09/2009), which discuss the reasons for corporations’ increased use of debt financing, and subsequent concerns about excess borrowing.

(iii) ‘The Gods Strike Back’ (dated 02/13/2010), read pages 1 to 4 only.

(iv) ‘The world has not learned the lessons of the (2008) financial crisis’ (dated

09/06/2018)

Summarize and synthesize, the contents of the articles, and conclude with an opinion on how the information you have read would affect your capital structure decisions as a financial manager (i.e. would you use less or more or less debt than suggested by the MM and Trade-off (static) models of capital structure), and why. Include a justified assessment of how you think the recently implemented corporate tax rate reduction would impact your capital structure decisions.

PLEASE NOTE

1) double spaced, font :Time new roman, size 11

2) 3-4 pages

3) 0% plagiarism