Why debt is the cheapest source of finance 2024?
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Works at the World Health Organization, Lives in Geneva, Switzerland.
Basically issue either debt or equity. ... However, debt is actually the cheaper source of finance for a couple of reasons. Tax benefit: The firm gets an income tax benefit on the interest component that is paid to the lender. Dividends to equity holders are not tax deductable.
2023-05-07 11:13:51
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Harper Wilson
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Basically issue either debt or equity. ... However, debt is actually the cheaper source of finance for a couple of reasons. Tax benefit: The firm gets an income tax benefit on the interest component that is paid to the lender. Dividends to equity holders are not tax deductable.