Match the words with the term.
-Which of the following statements describes the effect of taxes on interest and dividends?
A) Income taxes increase the cost of borrowing.
B) Income taxes increase the cost of preferred dividends.
C) Preferred share dividends are deductible for tax purposes.
D) Finance costs are deductible for tax purposes.

Question

Quizplus · Accepted Answer

The Answer of Match the words with the term.
-Which of the following statements describes the effect of taxes on interest and dividends?
A) Income taxes increase the cost of borrowing.
B) Income taxes increase the cost of preferred dividends.
C) Preferred share dividends are deductible for tax purposes.
D) Finance costs are deductible for tax purposes.

Match the Words with the Term