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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 70
Which of the following statements about the relative advantages of equity and debt financing is false
A) An advantage of equity financing is that it does not have to be repaid.
B) An advantage of equity financing is that dividends are optional.
C) An advantage of equity financing is that new stockholders get to vote and share in the earnings of the company.
D) An advantage of debt financing is that interest is tax deductible.
A) An advantage of equity financing is that it does not have to be repaid.
B) An advantage of equity financing is that dividends are optional.
C) An advantage of equity financing is that new stockholders get to vote and share in the earnings of the company.
D) An advantage of debt financing is that interest is tax deductible.
Explanation
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Option (a) is not correct answer because...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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