Multiple Choice
Companies may find it attractive to issue debt instead of equity because:
A) interest on debt is tax deductible.
B) interest on debt has to be repaid by the shareholders, not the company.
C) interest on debt is always a cheaper form of finance than dividends on shares.
D) interest on debt is not locked in for repayment.
Correct Answer:
Verified
Correct Answer:
Verified
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