One advantage to debt financing over equity financing is that
A. debt financing can be repaid when the corporation has a surplus.
B. interest paid on debt financing may be tax deductible.
C. debt financing maintains a lower debt-toequity ratio.
D. interest is paid on debt securities at the discretion of the directors and need not be repaid if the corporation does not perform as well as expected.
B. interest paid on debt financing may be tax deductible.
You might also like to view...
AT&T, GE, Samsung, Shell Oil, and others have engaged in a(n) ________ exercise by sponsoring the Innovation Challenge, where top MBA students compete in teams to address company problems
A) crowdcasting B) syndication C) net monitoring D) product-preference E) advertising evaluation
Websites often act as what type of report?
A) Analytical B) Informational C) Due diligence D) Interactive E) Planning
If the experimental design called for the respondents to be randomly assigned to one of three experimental groups and for one of three versions of a test commercial to be randomly administered to each group, this design would be using ________
A) design control B) statistical control C) randomization D) matching
When the straight-line method of amortization is used for a bond discount, the amount of interest expense for an interest period is calculated by
a. adding the amount of discount amortization for the period to the amount of cash paid for interest during the period. b. deducting the amount of discount amortization for the period from the amount of cash paid for interest during the period. c. multiplying the carrying value of the bonds by the effective interest rate. d. multiplying the face value of the bonds by the face interest rate.