Which of the following is not a true statement?
A)Companies that are believed to have high bankruptcy risk generally receive low credit ratings and must pay a higher interest rate for borrowing.
B)As a company's level of debt increases,the risk of bankruptcy increases.
C)Interest expense incurred when borrowing money,as well as dividends paid to stockholders,are both tax-deductible.

Question

Quizplus · Accepted Answer

Interest expense incurred when borrowing money is tax-deductible, but dividends paid to stockholders are not tax-deductible.

Which of the Following Is Not a True Statement