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FIN 515 Week 1 DQ 1
Capital Formation
Discuss capital formation as it relates to the business form and the life cycle of businesses. How would the business form used by the manager/owner impact the firm’s ability to raise capital?
Due to the lack of an individual state income tax in Florida, do more companies start in Florida than other states? What’s the likelihood that Florida will have an individual state income tax any time soon?
What should be the objective of a corporation? How can financial managers ensure that that objective is being met?
Corporations may deduct interest payments, but they cannot deduct dividends when they are computing their corporate tax liability. With such a difference, how will this impact a corporation’s capital structure choice?
Please comment on the changes in the federal tax on dividends about eight years ago. Has that somewhat reduced the double taxation issue?
