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

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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...
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Essentials of Corporate Finance

ISBN: 978-1118868416

1st edition

Authors: Robert Parrino, David S. Kidwell, Thomas Bates

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