If a corporation is subject to a 27% tax rate, why may it be advantageous for it

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If a corporation is subject to a 27% tax rate, why may it be advantageous for it to issue debt as opposed to preferred shares?

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Canadian Income Taxation 2022/2023

ISBN: 9781260881202

25th Edition

Authors: William Buckwold, Joan Kitunen, Matthew Roman

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Question Posted: Apr 12, 2023 01:10 AM

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If a corporation is subject to a 27% tax rate, why may it be advantageous for it

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Debt financing is serviced by the payment of interest thatis fully deductible from corporate income ...View the full answer

Canadian Income Taxation 2022/2023

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