Which of the following is an advantage of debt financing??
A. ?Interest charges on debt is very minimal.
B. ?Interest charges on debt are tax deductible.
C. ?Interest charges on debt are based on the net income of the firm.
D. ?The higher the interest charges, the lower the bankruptcy costs.
E. ?Firms that are entirely debt financed have to pay very minimal taxes.
Answer: B
You might also like to view...
The amount of a transaction may be immaterial by company standards but still be considered significant by financial statement users
a. True b. False Indicate whether the statement is true or false
Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the balance in the Treasury Stock account on August 2?
A. $100. B. $0. C. $1,200. D. $2,600. E. $5,050.
_____ are an external data source for an information system
a. Transaction reports c. Labor statistics b. Personnel records d. Sales records
A tangible cost is one that can be reasonably quantified, such as software purchase and insurance.
Answer the following statement true (T) or false (F)