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<p style="text-align:justify;"> </p> <p style="text-align:justify;"><strong><span>(a) Interest is tax-deductible,</span></strong></p> <p style="text-align:justify;"><strong><span>(b) It reduces WACC,</span></strong></p> <p style="text-align:justify;"><strong><span>(c) Does not dilute owners control,</span></strong></p> <p style="text-align:justify;"><span><strong>(d) All of the above.</strong></span></p>
a) Interest is tax - deductible
(a)
Answer is #a- Interest is tax-deductible,
Some of the advantages of debt financing are:
D is the correct answer
Option-A.
