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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
D
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
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