A Significant Advantage of Issuing Stock Instead of Debt Is

question 33

True/False

A significant advantage of issuing stock instead of debt is that payment of dividends is discretionary.

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Definitions:

Tax Efficiency

A measure of how much of an investment's return is left after taxes, indicating the effectiveness of minimizing tax liability through investment choices.

Revenue

The total income generated by the sale of goods or services before any costs or expenses are deducted.

FICA Taxes

Taxes levied by the Federal Insurance Contributions Act in the United States to fund Social Security and Medicare programs, deducted from workers' paychecks.

Income Taxes

Taxes imposed by a government on individuals or entities based on their income or profits.