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true or false? A major advantage of debt financing is that interest expense is tax deductible. Issuing stock to obtain financing is called equity financing.

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A major advantage of debt financing is that interest expense is tax deductible. Issuing stock to obtain financing is called equity financing. Treasury stock is a corporation's own stock that has been issued and subsequently repurchased by the corporation. The par value of stock indicates what the stock is worth. A company that pays no dividends is always a poor investment. One reason why a company may choose a stock split over a stock dividend is that the stock split does not reduce Retained Earnings

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