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Prestige Productions Ltd is planning an expansion internationally and is considering its financing options. One senior manager of the company has advised the Board of

Prestige Productions Ltd is planning an expansion internationally and is considering its financing options. One senior manager of the company has advised the Board of Directors that using debt is cheaper than equity as interest is tax deductible, whereas dividends are not. As a shareholder of Prestige Productions Ltd, do you agree with this statement? Why or why not?

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