Assume that legislators are considering tax reform plan that will increase the corporate tax rate from 38.5% to 40% while noticing the tax deductibility of interest expenses. What effect would this tax reform plan have on optimal debt ratio of the corporations? Why? What is the tax deductibility of debt were removed?

Popeye produces 20 cans of spinach in 8 hours. wimpy produces 15 hamburgers in 10 hours. if each hamburger trades for 1.5 cans of spinach, then: a. wimpy’s production and productivity are greater than popeye’s. b. popeye’s production is greater than wimpy’s, but his productivity is less. c. wimpy’s production is greater than popeye’s, but his productivity is less. d. popeye’s production and productivity are greater than wimpy’s.