15-2 Topics Covered O Debt and Value in a Tax Free Economy CApital Structure and Corporate Taxes SCost of financial distress EXplaining financial choices Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 15- 2 Irwin/McGraw-Hill Topics Covered Debt and Value in a Tax Free Economy Capital Structure and Corporate Taxes Cost of Financial Distress Explaining Financial Choices