Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. what is a potential tax advantage of debt financin

What is a potential tax advantage of debt financing? Interest payments on debt are...

70.2K

Verified Solution

Question

Finance

image

What is a potential tax advantage of debt financing?
Interest payments on debt are usually tax-deductible
There are no tax advantages to debt financing
Dividends paid to shareholders are tax-deductible
The principal amount borrowed is tax-deductible
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The fox population in a certain region has a continuous growth rate of 6 percent...

Basic Math
Q

disposal of a used delivery van would be classified as

Accounting
Q

The General Fund collected the following amounts in cash: Current year Real Property Taxes $6,484,000...

Accounting
Q

GEHE was a new production analyst at RHI, Inc., a large furniture factory in North...

Accounting
Q

The following are the income statement and comparative balance sheets of Clarissa Company: Clarissa Company...

Accounting
Q

Bugsy provided the following operating information during the current year. Operating income $185,000 ...

Accounting
Q

Following are unadjusted balances along with year-end adjustments for Quinlan Company. Complete the adjusted trial...

Accounting
Q

D. The following information is available for Eddingburg Company. Beginning accounts receivable $ 70,000 Ending...

Accounting
Q

On January 1, Rubino Art sells work to Apple Inc. on account for $350, and...

Accounting
Q

Porpoise acquires 100% of Sunfish in a taxable business combination. The applicable tax rate is...

Accounting
Q

Current Attemptin Progress Or haly 1.2025, Whisperibis ine made twosales 1. It sold land homing...

Accounting
Q

BRUSHSTROKE ART STUDIO, INC. UNADJUSTED TRIAL BALANCE DECEMBER 31, 2015 Cash.... Client fees receivable........ Supplies...

Accounting