Why would firms prefer to receive dividend income and make interest payments rather than make dividend payments

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Why would firms prefer to receive dividend income and make interest payments rather than make dividend payments and receive interest payments?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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