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<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>
(d) Dividends not Payable to lenders
Debt financing increases the rate of return on of seed capital
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.
C tax-deductibility
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.
D is the main reason..tax deduction not getting benefits much
(c) Tax-deductibility of Interest ,
C
D
ANSWER IS D
