Financial management when interests on debt are not fully deductable. The Italian case study

Corporate finance management rules are written under the assumption that financing costs are deductible from taxable income. If this assumption is relaxed, such management rules needs to be revised. How do managers maximise operating margins and returns if this assumption no longer holds true? We faced this issue using both an algebraic and a simulation approach. By defining numerical analysis models, we bypass algebraic profile and skills, which might become too complex for practitioners.