TRUE OR FALSEInterest treated as capital expenditures is a deductible interest expense.There is no tax benefit when the company chooses to source out funds by borrowings.15% capital gains tax on net capital gains is imposed to investors whose sale of stocks which is not listed or traded in the LSE.

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Answered: TRUE OR FALSE Interest treated as…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter3: Organizing And Financing A New Venture

Section: Chapter Questions

Problem 7EP

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TRUE OR FALSE

Interest treated as capital expenditures is a deductible interest expense.
There is no tax benefit when the company chooses to source out funds by borrowings.
15% capital gains tax on net capital gains is imposed to investors whose sale of stocks which is not listed or traded in the LSE.

Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

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