Why is interest expense said to cost the firm substantially less than the actual expense, while dividends

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Why is interest expense said to cost the firm substantially less than the actual expense, while dividends cost it 100 percent of the outlay?

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Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Question Posted: Oct 14, 2014 06:22 AM

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Why is interest expense said to cost the firm substantially less than the actual expense, while dividends

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The Interest expense is a tax deductible item to the corporation while divi...View the full answer

Foundations of Financial Management

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