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From a corporation's point of view, does the tax treatment of dividends and interest paid favor the use of debt financing or equity financing?

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From a corporation's point of view, does the tax treatment of dividends and interest paid favor the use of debt financing or equity financing? Debt financing Equity financing You bought 1,000 shares of Tund Corp. stock for $60.59 per share and sold it for $82.35 per share after a few years. How will your gain or loss be treated when you file your taxes? As a capital gain taxed at the long-term tax rate As a capital gain taxed at the current ordinary-income tax rate

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