Advantages of debt to the corporation include all but which of the following? Advantages of debt to the corporation include all but which of the following?

D) All of these statements are true.

A) Interest payments are tax deductible.

B) When the corporate tax rate is 25%, the effective after tax cost of interest is only 75% of the dollar amount expended.

C) The financial obligation is clearly specified and of a fixed nature (with the exception of floating rate bonds).