Which of the following is an advantage of a company using equity rather than debt to finance a project? ___________ Dividends do not need to be paid. ___________ Interest is tax deductible, whereas dividends paid are not. ___________ Dividends require less cash than does paying interest on debt. ___________ No taxation occurs, similar to bonds.
Which of the following is an advantage of a company using equity rather than debt to finance a project? ___________ Dividends do not need to be paid. ___________ Interest is tax deductible, whereas dividends paid are not. ___________ Dividends require less cash than does paying interest on debt. ___________ No taxation occurs, similar to bonds.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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13. Which of the following is an advantage of a company using equity rather than debt to finance a project?
___________ Dividends do not need to be paid.
___________ Interest is tax deductible, whereas dividends paid are not.
___________ Dividends require less cash than does paying interest on debt.
___________ No taxation occurs, similar to bonds.
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