In structuring the capitalization of a corporation,the tax law is neutral for the investor as to debt versus equity financings.

Name: In structuring the capitalization of a corporation,the tax law is neutral for the investor as to debt versus equity financings.
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Individual investors may prefer dividend income to interest income because dividend income is taxed using the capital gains rates while interest income is taxed at the higher ordinary income rates.

In Structuring the Capitalization of a Corporation,the Tax Law Is