Question
For a given company, the cost of debt is less than its cost of equity because for the following reasons, except: Group of answer choices
For a given company, the cost of debt is less than its cost of equity because for the following reasons, except: Group of answer choices
interest is a legal obligation, yet dividends are not.
interest is tax deductible and dividends are not.
interest income is taxed at a higher rate than is dividend income.
creditors have seniority over owners.
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Introduction To Derivatives And Risk Management
Authors: Robert Brooks, Don M Chance
9th Edition
1133190197, 978-1133190196
