Why might companies have an incentive to finance their foreign operations with as much debt as possible?
Question:
Why might companies have an incentive to finance their foreign operations with as much debt as possible?
a. Interest payments are generally tax-deductible.
b. Withholding rates are lower for dividends.
c. Withholding rates are lower for interest.
d. Both (a) and (c).
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Related Book For 
International Accounting
ISBN: 978-1260466539
5th edition
Authors: Timothy Doupnik, Mark Finn, Giorgio Gotti, Hector Perera
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