Have the Tax Benefits of Debt Been Overestimated?

We re-examine the claim that many corporations are underleveraged in that they fail to take full advantage of debt tax shields. We show prior results suggesting underleverage stems from biased estimates of tax benefits from interest deductions. We develop improved estimates of marginal tax rates using a non-parametric procedure that produces more accurate estimates of the distribution of future taxable income. We show that additional debt would provide firms with much smaller tax benefits than previously thought, and when expected distress costs and difficult-to-measure non-debt tax shields are also considered, it appears plausible that most firms have tax-efficient capital structures

3D hydrodynamics simulations of a 3 M⊙M_{\odot} core-helium burning star

The inner structure of core-helium burning (CHeB) stars remains uncertain due to the yet unknown nature of mixing at the boundary of their cores. Large convective cores beyond a bare Schwarzschild model are favoured both from theoretical arguments and from asteroseismological constraints. However, the exact nature of this extra mixing, and in particular the possible presence of semiconvective layers, is still debated. In this work, we approach this problem through a new avenue by performing the first full-sphere 3D hydrodynamics simulations of the interiors of CHeB stars. We use the PPMstar explicit gas dynamics code to simulate the inner 0.45 $M_{\odot}$ of a 3 $M_{\odot}$ CHeB star. Simulations are performed using different Cartesian grid resolutions (768$^3$, 1152$^3$ and 1728$^3$) and heating rates. We use two different initial states, one based on MESA's predictive mixing scheme (which yields a large overshoot region) and one based on the convective premixing approach (which exhibits a semiconvective interface). The general behaviour of the flow in the convective core and in the stable envelope (where internal gravity waves are observed) is consistent with our recent simulations of core convection in massive main-sequence stars, and so are the various scaling relations. The semiconvective layers are dominated by strong internal gravity waves that do not produce measurable species mixing, but overshooting motions from the convective core gradually homogenize the semiconvective interface. This process can possibly completely erase the semiconvective layers, which would imply that CHeB stars do not harbour a semiconvection zone.Comment: Submitted to MNRAS. Movies available at https://www.ppmstar.or

Balance task and head orientation dependency of vestibular reflexes in neck muscles

Human upright posture of both the head and body is facilitated by the CNS’s ability to integrate multiple sensory feedback signals, as well as its discernibility of the motor commands that maintain this stabilization. The vestibular organ in particular detects motion of the head-in-space, which is transformed according to on-going head and body orientation into appropriate motor responses. However, when motor commands do not contribute to the control of standing posture, and are incongruent with their expected sensory consequences, vestibulomuscular responses in the lower limb undergo unconscious suppression. In this study, we investigated whether vestibular response suppression occurs in neck muscles under conditions where the muscles are active but not engaged in a task to balance the head. In addition, we examined the effects of head orientation to identify spatial transformation of vestibular reflex responses. Eight subjects were exposed to stochastic vestibular stimulation (0-75 Hz) in a seated condition while their head was either free or fixed, and rotated at either 0 or 60°. In head-free conditions, subjects were asked to rotate their head 60° to the left in order to activate agonist neck muscle pairs (sternocleidomastoid - SCM and splenius capitis - SPL). In head-fixed conditions, subjects performed isometric neck muscle contractions in yaw at orientations of 0° and 60°, as well as flexion, extension and co-contraction at an orientation of 0°. Intramuscular EMG was collected bilaterally in SCM and SPL muscles. Muscle responses correlated to the input stimuli were significant (P < 0.05) for all conditions provided the muscle was used in contraction. Neither muscle underwent the expected vestibulomuscular suppression when not engaged in the balance task (i.e. head-fixed). Nevertheless, the magnitude of the SPL responses decreased by 22% when the head was fixed whereas SCM responses were unaffected. The effect of head fixation only in SPL suggests differences in neural pathways across muscles, possibly via alternative pathways known to exist in the SPL from the well-established monosynaptic vestibulospinal inputs in SCM and SPL. For both muscles, the effect of orientation and force direction had no effect on muscles responses. Since the stimulation is fixed relative to the head, the same muscles are activated to respond to the input stimulus at both orientations and all force directions. These results indicate that the vestibular pathways connecting neck muscles are less susceptible to suppression than lower limb muscles, most likely because the monosynaptic inputs innervating them are subject to less central control

Letter from [Br.] R. [Gabriel Blouin] Peres Dominicains, Fall River, Massachusetts

Letter from [Br.] R. [Gabriel Blouin] of Peres Dominicains, Fall River, Massachusetts, to Charlotte Michaud.https://digitalcommons.usm.maine.edu/michaud-undated/1010/thumbnail.jp

Enhanced extra mixing in low-mass stars approaching the RGB tip and the problem of Li-rich red-clump stars

A few percent of red giants are enriched in Lithium with $A(\mathrm{Li}) > 1.5$. The evolutionary phase of the Li-rich red giants has remained uncertain because they could be placed both on the red-giant branch (RGB) near the bump luminosity and in the red clump (RC) region. However, thanks to asteroseismology, it has been found that most of them are actually RC stars. Starting at the bump luminosity, RGB progenitors of the RC stars experience extra mixing in the radiative zone separating the H-burning shell from the convective envelope followed by a series of convective He-shell flashes at the RGB tip, known as the He-core flash. Therefore, the He-core flash was proposed to cause fast extra mixing in the stars at the RGB tip that is needed for the Cameron-Fowler mechanism to produce Li. Alternatively, we propose that the RGB stars are getting enriched in Li by the same extra mixing that starts at the bump luminosity and initially leads to a decrease of the surface Li abundance but that is getting enhanced and begins to produce Li when the stars are approaching the RGB tip. We discuss five mechanisms of the RGB extra mixing, namely, the joint operation of rotation-driven meridional circulation and turbulent diffusion, the Azimuthal Magneto-Rotational Instability (AMRI), thermohaline convection, buoyancy of magnetic flux tubes, and internal gravity waves, and, based on results of (magneto-) hydrodynamics simulations, come to the conclusion that it is the mechanism of the AMRI that is most likely to support our hypothesis.Comment: 14 pages, 7 figures, submitted to MNRA

Molecular characterisation of viruses from Kiwifruit

In 2003 Apple stem grooving virus was discovered in Actinidia accessions from China, being held in quarantine in Auckland. Subsequent examination of kiwifruit germplasm from the same source has detected several additional viruses, including a ~300 nm rigid rod related to Ribgrass mosaic virus (Tobamovirus), a 700-750 nm flexuous virus related to Citrus leaf blotch virus (Flexiviridae) and a novel vitivirus. Currently these viruses have not been reported from commercial kiwifruit crops in New Zealand or elsewhere. The biological properties of the viruses from kiwifruit and their phylogenetic relationships with similar viruses from other plants will be described, and the possible implications for the international movement of Actinidia germplasm are discussed