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Discussion Question 4-14 (LO. 5) Regarding the advantages and disadvantages of utilization of debt rather than equity when structuring the capitalization of a corporation, indicate

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Discussion Question 4-14 (LO. 5) Regarding the advantages and disadvantages of utilization of debt rather than equity when structuring the capitalization of a corporation, indicate whether each of the following statements are "True" or "False". a. Interest on debt is deductible by the corporation, while dividend payments are not. b. As long as a corporation has earnings and profits it is difficult to withdraw the investment without triggering dividend income. C. Shareholders' dividend income is taxed using preferential capital gains rates. d. Loan repayments are always taxable to investors

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