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متابعة

Debt Financing is a cheaper source of finance because of: ?

<p><strong><span>(a) Time Value of Money,</span></strong></p> <p><strong><span>(b) Rate of Interest,</span></strong></p> <p><strong><span>(c) Tax-deductibility of Interest,</span></strong></p> <p><strong><span>(d) Dividends not Payable to lenders.</span></strong></p>

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تم إضافة السؤال من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
تاريخ النشر: 2014/10/21
FITAH MOHAMED
من قبل FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

(d) Dividends not Payable to lenders

Debt financing increases the rate of return on of seed capital

georgei assi
من قبل georgei assi , مدير حسابات , المجموعة السورية

Atamoal religion provides an opportunity for the institution to reinvest retained earnings, in the case of non-shareholders to take their share of them, which supports the ability of the borrowing institution by property rights, the answer is correct: 

(d) Dividends not Payable to lenders.

Sunay Narang
من قبل Sunay Narang , Transaction Banking Intern , Deutsche Bank

You would definetly see advantages through tex-deductibility, however, it is also cheaper as through equity you raise capital by giving away a larger percentage of your company's ownership, which eats into company profit. 

manaf almas
من قبل manaf almas , Auditor , DAR AL NUZUM PUBLIC ACCOUNTANTS

D is the main reason..tax deduction not getting  benefits much

Ahmed Abd Alwahab Awad Ibrahim
من قبل Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

    (c) Tax-deductibility of Interest ,

Javed Masood
من قبل Javed Masood , Deputy Manager Admin & Accounts , The Imperial Electric Co. (Pvt) Ltd

C

Ahmed kandil
من قبل Ahmed kandil , Cost Controller , Battour Holding Cpompany

ANSWER IS D 

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