Which of the following is one of the main advantages of using long-term debt financing instead of equity financing?
A)Not having to pay back the principal
B)Ability to raise large amounts of capital
C)Tax-deductibility of interest
D)Tax-deductibility of dividends

Question

Quizplus · Accepted Answer

One of the main advantages of debt financing is that interest paid on bonds and notes is tax-deductible,while dividends paid on equity financing is not.

Which of the Following Is One of the Main Advantages