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True or False: In structuring the capitalization of a corporation, the tax law favors debt versus equity financing. I know Individual investors may prefer dividend
True or False:
In structuring the capitalization of a corporation, the tax law favors debt versus equity financing.
I know Individual investors may prefer dividend income to interest income because dividend income is taxed using the capital gains rates while interest income is taxed at the higher ordinary income rates. But I also think dividend income was not deductible while interest income can be deductible, so I don't know tax law favor debt or equity financing
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