For which of the following methods of obtaining capital can a company get tax benefits (deductions)?...
| For which of the following methods of obtaining capital can a company get tax | |||||
| benefits (deductions)? | |||||
| a | debt | ||||
| b | preferred stock | ||||
| c | common stock | ||||
| d | internal equity | ||||
| e | none of the above | ||||
Homework Answers
a) Debt
Explanation:
Raising capital through debt can be beneficial as the amount of interest is deducted before levying corporate tax. Therefore, it is the cheapest method to raise capital out of all the options.
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For which of the following methods of obtaining capital can a
company get tax
benefits
(deductions)?...
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