Why do corporations pay higher interest rates on debt than the US federal government?

Q: How does the U.S. tax structure influence a firm’s willingness to finance with debt?

A: Companies’ capital structure may contain debt, equity, and preferred stock. It is not necessary for…

Q: Determine the key reasons why a multinational corporation might decide to borrow in a country such…

A: When the corporation wants to borrow the amount from various countries it will consider factors i.e…

Q: Te government ofers a temporary investment tax credit: for each dollarof investment that frms…

A: Firms always consider to buy more investment goods if the government offers a temporary tax credit…

Q: What are the potential consequences of a country having a largeoverall debt? If you were in the…

A: A country having a debt means that it has taken a loan from  some country or some company. Large…

Q: Which one of the following factor affects the movement of share price of banking stock in the…

A: The Central bank is a body that monitors the activities of the banking sector and controlled its…

Q: Assuming the government is selling a government bond to fight COVID-19, and at the same time,…

A: Bonds are debt instruments that are issued by the borrowing organizations. Bonds can be issued to…

Q: owns most of the US national deb

A: As of Oct 21, total national debt of US was $28.4 Trillion

Q: Which of the following statements is true regarding STRIPS? O a) They are issued by the Treasury. O…

A: Strips: (Separate Trading of Registered interest and Principal of Securities) are debt securities…

Q: Discuss the issue of equity in taxes in the U.S. generally and in Texas specifically?

A: Texas has the second-largest economy within the u. s., with a gross state product of $1.8 trillion…

Q: Which sort of firm must pay taxes on its cash payments to its shareholders

A: Generally speaking, an S company is a small organization where stockholders should be fewer than…

Q: The us tax system favors which of the following as a means of raising capital  common stock…

A: Introduction: This question is related to the concept of corporate finance. Corporate money…

Q: Explain the concept of Tax Deduction in WACC. Does this tax deduction make debt finance Cheaper Then…

A: WACC is the weighted average cost of equity, cost of debt and cost of preference capital.

Q: Why might a multinational corporation decide to borrow in a country such as Brazil,where interest…

A: Multinational companies generally prefer to acquire cash from economies of low premiums. This can be…

Q: Why might the effective tax rate paid on income earned within a country be different from that…

A:

Q: Distinguish between direct finance and indirect finance. Which of these is the most important source…

A: Direct finance-Under direct finance, there is a direct relationship between lender and borrower.…

Q: Suppose Congress changed the tax laws in a way that (1) permitted equipment to be depreciatedover a…

A: It allowed equipment to depreciate over a shorter period of time: This move reflects 'Conventional…

Q: How were financial corporations viewed pre-, during and post- recession from a nation-state and…

A: Financial corporations are those corporations which provide financial services to the customers.…

Q: “The debt of government-owned corporation is guaranteed by the full faith and credit of the U.S.…

A: Full faith and credit means the unconditional commitment and guarantee provided by government with…

Q: Why are mortgage backed securities paid higher interest rates than other investments like time…

A: Mortgage-backed securities are a set of home loans that are sold by banks. They are then put…

Q: Why do we have banks chartered by the States, and some also chartered by the Federal government?…

A: State chartered banks are operated in a particular state only. But there is no restriction on the…

Q: assuming the government is selling a government bond to fight COVID-19, and at the sa,e time…

A: The question is based on the concept as comparison between corporate bond and government bond for…

Q: Why income tax is higher than corporate tax around the world?

A: A direct tax paid by individuals to the government for their income in terms of salaries is termed…

Q: 1-If a country imposes lower corporate income tax rates, does that provide an unfair advantage?…

A: CORPORATE TAX : The tax charged over the profits earned by the company during a defined financial…

Q: Which is not a benefit of debt to the corporation? a. interest payments are tax deductible b. when…

A: When debt is borrowed heavily,  it increases the burden of interest and principal repayment.  When…

Q: Why do short-term debt securities issued by private companies generally offer higher yields than…

A: Short term debt securities are referred as the securities, which are issued within 12 months to the…

Q: What remedy does the IMF recommend to China for controlling the-high level of corporate debt?…

A: Corporate debt restructuring is referred to as re-organization of the distressed of an outstanding…

Q: Which of the following are issued by the United States Government to borrow money? OA. Treasury…

A: Financial Instruments are the instruments used to trade between two parties which carries monetary…

Q: What is the impact of capital controls that restrict mobility of capital across nationalborders on…

A: Capital controls are the controls that are implemented on the international movement of capital.…

Q: ssuming the government is selling a government bond to fight COVID-19, and at the same time, ASHANTI…

A: Step 1 A bond is a debt commitment. When investors purchase corporate bonds, they are effectively…

Q: Why are foreign banks or insurance corporations cannot deposit securities with the SEC?

A: Some insider lending by a bank or other depository institution that is insured under the Federal…

Q: How can a country’s tax system affect the manner in which an operation in that country is financed…

A: The process by which a government or taxation authority imposes or collects a tax from its citizens…

Q: The size of a country’s national debt should not be of much economic concern as long as:

A: Government too requires funds so that the country or even state can run by them, it is the amounts…