The major advantage of debt financing is: a. It allows a firm to use creditors money. b.

Question:

The major advantage of debt financing is:

a. It allows a firm to use creditors’ money.

b. Interest payments are more predictable than dividend payments.

c. Interest payments are not required when a firm is not doing well.

d. Interest payments are tax deductible.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...