With reference to the paper by Graham (2000), discuss the tax benefits of debt. Provide empirical evidence in this literature
Graham, J.R. (2000), How Big Are the Tax Benefits of Debt?. The Journal of Finance, 55: 1901-1941. https://doi.org/10.1111/0022-1082.00277
What is required to answer the essay question? In order to answer the question, you are expected to use your own words and provide a short summary of Graham (2000). Also, you are expected to provide a broad literature review.
You have to review the recent empirical literature. What theories have been proposed and what hypotheses have been postulated? Are the theories supported by empirical evidence using data analysis? How are the hypotheses tested?
You should look at the econometric tests/methods conducted in the relevant topics. Please search for empirical papers on the subject and see the econometric models/methods they have run.
You can start the essays with a summary of Graham (2000) (400-600 words). Then, you can move on to discussions about the theories/hypotheses, followed by showing whether or not the empirical evidence supports the theory, and demonstrate the conclusions that have been drawn in the extensive literature.
Rather than listing the findings in the literature, you are expected to demonstrate your understanding and provide a coherent argument.
It is most important that you give explanations why the methodologies/regression models/variables can be used to test the theories, and the related literature to the reference paper you have chosen.
You should include equations with clear notations, as well as graphs to assist your argument. Please make sure you give them adequate explanation and citation.
You should look at the econometric tests/methods conducted. Please search for empirical papers and see the econometric models/methods they have run.
Type Of Service: Academic Paper writing
Type Of assignment: Essay
Number of sources: 20
Academic Level: Undergraduate
Paper Format: Harvard
Line Spacing: Single
Language style: UK English