How does the federal income tax structure impact a businesses decision to finance with use of debt vs. equity?

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How does the federal income tax structure impact a businesses decision to finance with use of debt vs. equity?

2007-01-07 06:25:11 · 1 answers · asked by **LIBERTY** 1 in Education & Reference ➔ Higher Education (University +)

1 answers

well, interest payments are tax deductible and dividends are not.
that is one pretty big incentive, eh?
There are many other ways federal tax impacts business financing decisions also.

2007-01-07 06:42:31 · answer #1 · answered by Beverly (Bea) 4 · 0⤊ 0⤋