How can finance executives walk the tax reform tightrope?

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Making capital allocation decisions in light of US tax reform

The recent Tax Cuts and Jobs Act (the Act) will have immediate and long-term implications on capital structure, capital allocation and performance measurement and forecasting. These implications are primarily driven by a much lower nominal corporate tax rate, changes to credits and deductions for businesses and individuals, and a modified territorial system for overseas earnings. In this article we explore the questions finance executives should be asking about the impact of tax reform including:

  • How will the decrease in the corporate tax rate and limitation on the deductibility of interest expense affect our capital structure?
  • Does the Act affect only US debt?
  • How can we assess the right capital strategy for our company?

Read our full report to get answers to some of the top questions that finance executives should be considering.

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