Which of the following is true about the leveraging effect? O Interest on debt is a...
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Which of the following is true about the leveraging effect? O Interest on debt is a tax deductible expense, which means that it can reduce a firm's taxable income and tax obligation. O Interest on debt can be deducted from pre-tax income, resulting in a greater taxable income and a smaller available operating income. The U.S. tax structure influences a firm's willingness to finance with debt. The tax structure debt. discourages encourages more Which of the following is true about the leveraging effect? O Interest on debt is a tax deductible expense, which means that it can reduce a firm's taxable income and tax obligation. O Interest on debt can be deducted from pre-tax income, resulting in a greater taxable income and a smaller available operating income. The U.S. tax structure influences a firm's willingness to finance with debt. The tax structure debt. discourages encourages more
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Answer 1 A Interest on debt is a tax deductible expense which means tha... View the full answer
Related Book For
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill
Posted Date:
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