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Which of the following statements is true? Interest on bonds is tax deductible. Interest on bonds is not tax deductible. Dividends to stockholders are tax

Which of the following statements is true?

  • Interest on bonds is tax deductible.
  • Interest on bonds is not tax deductible.
  • Dividends to stockholders are tax deductible.
  • Bonds do not have to be repaid.
  • Bonds always increase return on equity.

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