The primary way that financial engineering can create value is by lowering firm taxes.

Name: The primary way that financial engineering can create value is by lowering firm taxes.
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Financial engineering is the use of tools other than straight debt and equity to manage a company’s capital structure and risk profile. As with any change in capital structure, it creates value only if it increases cash flows or reduces the cost of capital, usually STET accomplished by lowering tax obligations.

The Primary Way That Financial Engineering Can Create Value Is