Which of the following are true about debt and equity interest payments are generally tax deductible but dividends are not debt returns are limited to repayment of principal and interest potential equity returns are infinite liabilities and debt are the same thing all public companies pay dividends

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter4: Additional Income And The Qualified Business Income Deduction
Section: Chapter Questions
Problem 18MCQ
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Which of the following are true about debt and equity
interest payments are generally tax deductible but dividends are not
debt returns are limited to repayment of principal and interest
potential equity returns are infinite
liabilities and debt are the same thing
all public companies pay dividends
Transcribed Image Text:Which of the following are true about debt and equity interest payments are generally tax deductible but dividends are not debt returns are limited to repayment of principal and interest potential equity returns are infinite liabilities and debt are the same thing all public companies pay dividends
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