In a world of both personal and corporate taxes,individual investors may not be able to get the full advantage of debt by borrowing personally.Corporate borrowing rates,personal borrowing rates,and tax rates may differ.

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This is true because the interest rates on corporate borrowing may differ from personal borrowing rates, and the tax implications on the interest payments may also be different for individuals and corporations. Therefore, individual investors may not be able to fully benefit from borrowing money to invest in the same way that corporations can.

In a World of Both Personal and Corporate Taxes,individual Investors