How does the deductibility of interest and dividends by the paying corporation affect the choice of financing

Question:

How does the deductibility of interest and dividends by the paying affect the choice of financing (that is, the use of debt versus equity)?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...