According to the new Tax Cuts and Jobs Act (TCJA) of 2017, which of the following statements are true?

According to the new Tax Cuts and Jobs Act (TCJA) of 2017, which of the following statements are true?

Multiple Choice

  1. Companies may wish to use more equity financing and less debt financing.

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All of the above.

  1. The new law reduces the amount of debt interest that can be deducted.

  2. Changes in tax law can lead to making different financial decisions.