Which of the following statements is true?
A) Dividends to shareholders are tax-deductible.
B) Interest on bonds is tax-deductible.
C) Issuing bonds will dilute shareholdings.
D) Bonds never create financial leverage.
E) Interest on bonds is not tax-deductible.

Question

Quizplus · Accepted Answer

Interest on bonds is tax-deductible, meaning companies can deduct the interest payments made on bonds from their taxable income, reducing their overall tax liability.

Which of the Following Statements Is True