Debt Has Benefits for Firms Because Interest Is Tax Deductible

question 74

True/False

Debt has benefits for firms because interest is tax deductible.As long as a firm has positive earnings it can receive the full benefit of the tax deductibility of debt interest expense.

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Definitions:

Legal Restrictions

Laws or regulations that limit or regulate certain activities or behaviors in order to protect public interest.

Negative Emotions

Feelings that are unpleasant or undesirable, such as sadness, anger, or fear.

On-the-job

Engaged in or pertaining to the performance of tasks, duties, or responsibilities within a work environment. A second explanation emphasizing practical, hands-on experience obtained while working.

Cultures

The shared values, beliefs, norms, and practices that shape the behaviors and traditions of a group of people.