If the corporate tax rate is 15 , what difference does it make whether the corporation issues debt bearing 8 interest or preferred shares with a 6 3 4 dividend rate ...

If the corporate tax rate is 15 the cost of issuing debtwith interes ...

If the corporate tax rate is 15%, what difference does it make whether the corporation issues debt

Question:

If the corporate tax rate is 15%, what difference does it make whether the issues debt bearing 8% interest or preferred shares with a 6 3/4% rate?
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... 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...