Which of the following statements is ?
A) Interest on bonds is tax deductible.
B) Interest on bonds is not tax deductible.
C) Dividends to shareholders are tax deductible.
D) Bonds do not have to be repaid.
E) Bonds always increase return on equity.

Question

Quizplus · Accepted Answer

Interest on bonds is tax deductible for the issuing company, which reduces the company's taxable income and thus its tax liability.

Which of the Following Statements Is