If SA Raises Its Tariff on Imported Sugar, It Will

question 53

True/False

If SA raises its tariff on imported sugar, it will reduce imports and improve its trade balance.

Understand and apply the Modigliani-Miller theorem with corporate taxes to find the value of the firm.

Assess the effect of personal and corporate tax rates on the value added by leverage.

Recognize the different types of leverage and their implications for a firm's financial risk.

Understand the impact of capital structure changes on a firm's cost of equity.