Interested to Buy Any Domain ? << Click Here >> for more details...
if both the tax rate & interest rate is 10%. then from
where the company raise fund from debt or equity.
and which one is more suitable.
- 4 Answers
- 7355 Views
- I also Faced
- E-Mail Answers
Answer Posted / siddhartha bhattacharjee
Debt capital is more suitable as it gives "TAX shild", i.e,
before calculating tax for a company the interest bearing
to debt capital is deducted which minimizes the taxable
income of the firm leading to lesser tax paid by the
compnay, where as if we use equity capital, divident is
paid from PAT so tax burden on the firm is larger.
Hence debt capital is always cheaper source of finance.
| Is This Answer Correct ? | 7 Yes | 1 No |
Post New Answer View All Answers
How your goal would coincide with company's goal?
What is an e-wallet?
Give an example when you had a clash with your peer. What did you do in that situation?
What is GAAR?
What is working capital? How would you calculate it?
hiiiii Respected sir/madam gd morning sir/Madam Can you please give me following questions of answer.? 1) what is the main difference between Current Assests and Fixed Assests? 2) working capital Management? why? which steps requried for working capital management at the statring day of the any type of business? 3) Ratio analysis? why? (Note: 1,on the above questions of answer the following points are exculded) 1) object 2) theory 3) features (Note :2,on the aove questions of answer the follwing points are inculded) 1) Practical oriented 2) aspects of business please reply..................
What is typically higher the cost of debt or the cost of equity?
What Is An Option In Derivative Market?
What is a Balanced budget ?
Define Mortgage Debentures?
When were banks nationalized?
METHOD TO CLAIM DRAWBACK
What is 'contingency fund'?
What is NATO? List some members of NATO?
A man purchase 1 Nokia mobile net price 10000 discount 25% than half of the amount cash & half of the amount check?
