Is it good to be in a high debt position in a high taxing country?

316 asked:


These two conditions keep the cost of capital low, as f (debt fraction is high) and t (tax rate) is high.

Roland

Tags: Debt Position, Fraction, Tax Rate

This entry was posted on Tuesday, March 17th, 2009 at 7:38 pm and is filed under Debt Relief. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

3 Responses to “Is it good to be in a high debt position in a high taxing country?”

1. bob shark Says:
   March 18th, 2009 at 11:34 pm

   Susan

   High debt is never good,

2. bostonianinmo Says:
   March 22nd, 2009 at 10:47 am

   Chad

   Only if you get a tax break for the cost of the debt. Not sure how you figure it keeps the cost of capital low…

3. Jo Blo Says:
   March 22nd, 2009 at 8:09 pm

   Carlos

   you’ll find that either your teacher or the book you got that from is full of it,,

   if i can make a higher return on my money than if I were to use it to pay any loans I have, that is when debt is good

   if i can’t work or sell my product, debt of any kind is bad