Most important concepts about international finance

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1. The tax code gives companies a strong preference for funding capital spending with debt rather than with equity. Equity is punished in our tax system. If you could change the tax laws regarding the tax deductibility of interest, what would you do? Why?

2. If you are a company with high operating leverage (variable costs are a small percentage of the sales dollar) what is your best external option for funding your capital projects? Why?

3. What are the most important concepts about International Finance? Why? How might you use these concepts in your future work endeavors?

Reference no: EM13116672

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