Boston Ceramics is a manufacturer of semiconductors.The company produces such parts as ceramic machine components.The company wants to raise $15 million to launch operations in a new country.The company decides to fund the launch entirely by using debt financing.Which of the following observations,if true,would most strengthen this financing decision?

Question

Quizplus · Accepted Answer

A)Dividend payments are not tax deductible. Debt payments reduce taxable income. High levels of debt funding will reduce tax burden.
B)Dividend payments are not tax deductible. Debt payments reduce taxable income. High levels of debt funding will reduce tax burden.
C)Dividend payments are not tax deductible. Debt payments reduce taxable income. High levels of debt funding will reduce tax burden.
D)Dividend payments are not tax deductible. Debt payments reduce taxable income. High levels of debt funding will reduce tax burden.
E)Dividend payments are not tax deductible. Debt payments reduce taxable income. High levels of debt funding will reduce tax burden.

Boston Ceramics Is a Manufacturer of Semiconductors