For the financial manager, taxes have important implications for

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Taxes have implications for dividend policy, financial restructurings, and capital structure policy. For dividend policy, taxes affect the amount of after-tax income available for distribution to shareholders. They also influence financial restructurings, such as mergers and acquisitions, by affecting the tax consequences for each company involved. In terms of capital structure policy, taxes affect the optimal mix of debt and equity financing for a company, as debt interest is tax-deductible while dividends paid to shareholders are not.

For the Financial Manager, Taxes Have Important Implications for