Indicate whether each of the following relates to equity (E) or debt (D) financing and whether it
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____ 1. Interest is tax deductible.
____ 2. Dividends are optional.
____ 3. It must be repaid.
____ 4. Additional stock issuances dilute existing stockholders’ control.
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1 D the deductibility of interest makes debt more favorable than eq...View the full answer
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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