Maximizing Joint Gains: How Taxes Affect Business Decisions

Maximizing Joint Gains: How Taxes Affect Business Decisions

Professor Howard Abrams
Fall 2019 course
M, T 1:15pm - 2:45pm in WCC Room 3018
3 classroom credits

Prerequisites: None

Exam Type: In Class

This course is taught from a book written by B-school professors for B-school students. It is entirely self-contained: there are no prerequisites. We will learn the basic rules of federal income taxation without worrying about the details, and we will determine how those rules affect business decisions. The assignments will require detailed computations (largely of present values). The exam will not require any computations but the students will be asked to describe (with words and equations) how the computations would be made. We will look at a variety of topics including choice of deferred compensation for high net worth individuals, choice of business organization, funding choices, form of merger and acquisition activity, and choice of location (domestic and foreign). The text is Scholes et al., Taxes and Business Strategy (6th ed. 2019).

Subject Areas: Taxation, Business Organization, Commercial Law, and Finance