Trump’s Plan To Lower Corporate Tax Rates Could Benefit Many MicroCap and SmallCap IPOs
According to the Renaissance Capital IPO Center, Trump’s plan to lower corporate tax rates could benefit many small/mid-cap IPOs.
Trump’s proposal is to lower corporate tax rates from the current 35% to 15% may not benefit large-cap global companies, that are able to tax arbitrage and pay very little in taxes, but many U.S. companies in the small/mid-cap segment are paying marginal rates of up to 35%, and Trump’s policy could greatly benefit them.
Renaissance suggest that companies currently paying, or forecasting, a 35% marginal rate should see their valuations jump significantly. Valuing a company based upon the present value future cash flows would result in significant increases in post-tax income, and thus valuation, under Trump’s plan.
See more about how Trump’s Plan To Lower Corporate Tax Rates Could Benefit Many MicroCap and SmallCap IPOs HERE.