What are the main differences between corporate debt and
equity? Why do some firms try to issue equity in the guise
of debt?

Answer Posted / a.b.

To clarify the above answer: The firm can take a deduction
on the interest paid on the debt. Thus, the interest paid
on the debt will not be taxed to the corporation, but will
be taxed to the debt holder. This is why it such payments
are essentially receiving "pass-through" status, whereas
dividend payments are taxed when the corporation receives
the funds and when the stock holder receives them - called
"double-taxation."

Is This Answer Correct ?    0 Yes 1 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

what is mean by tax holiday?

2122


why your choseing bank of america

2247


what is the abrevation for JJ in form jj

1443


how to solve the problem of sechdule date problem in sap proframme.

2040


analyses of Cost control

1920






sir i want aao lic exam model question paper

2366


STATE THE DIFFERENCE BETWEEN BANKING FIS AND NON BANKING FIS

2156


I am Simrat Kaur. I am persuing graduation from P.U. I have an experience of 14 months as a CSA. But i hav an experience letter of 6 months.But I can show my joinin letter of the other job. I hav knowledge of basics of computer & internet. Actually, m findin job in chandigarh. I am findin the right opportunity. so, Can u plz help me in findin the right job?? Can u plz tel me abt where interviews r goin on?

1979


MY QUESTION IS THAT IS WHEY WE SELL THE UPS IN THE MARKET BUY FROM THE IMPORT WHAT THE DUTY WE WILL FORWARD TO THEM.

1878


How to analyse the day to day sensex Points or Forex Values?

2247


I want to validate Customer credit payment with customer invoice, When billing time, the system check the customer credit payment, if customer credit is lesser than customer bill, system should not allow the billing further process. Can I configure in sap

1655


what is correct accounting treatment for preliminary exps and pre-operative Expsas per AS 26? or any other applicable AS?

2108


i have cleared c.s inter. for the purpose of training i want to know the companies who are providing training of c.s in punjab state.please help me in this.

1811


Does any one attented HSBC audit compliance test? Please let me know asap. suraj

2327


STATE & EXPLAIN THE IMPACT OF GLOBAL FINANCIAL CRIS ON CEMENT SECTOR IN INDIA:

1832