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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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Question ajoutée par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date de publication: 2014/10/21
FITAH MOHAMED
par 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

Sara Khan
par Sara Khan , financial and admin assistant , Ministry Of Defence

D

georgei assi
par 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.

Anayatullah Tahir
par Anayatullah Tahir , Finance Manager , Etqan Projects

C tax-deductibility

Sunay Narang
par 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
par manaf almas , Auditor , DAR AL NUZUM PUBLIC ACCOUNTANTS

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

Ahmed Abd Alwahab Awad Ibrahim
par Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

    (c) Tax-deductibility of Interest ,

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

C

Khaled Mohee Eldeen Abbas Mahmoud
par Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

D

Ahmed kandil
par Ahmed kandil , Cost Controller , Battour Holding Cpompany

ANSWER IS D 

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