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Would it ever be rational for a firm to borrow money in order to pay dividends?
Wiki User
∙ 12y ago
No
Wiki User
∙ 12y ago
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Why would a corporation rather borrow money and pay interest than sell stock and then pay dividends?
Interest is tax deductible, so amounts paid lower the tax they would have otherwise paid. Dividends are paid with after tax earnings..there is no tax deduction for them. Of course, someone receiving interest pays tax on it at their ordinary income rate, and someone receiving dividends pays tax at the capital gain rate, which is lower.
Under what circumstance would it be advisable to borrow money to take a cash discount?
Under what circumstances would it be advisable to borrow money to take a cash discount
Under what circumstances would it be advisable to borrow money to take a cash discount?
Under what circumstances would it be advisable to borrow money to take a cash discount?
What do you call a bank employee who helps customers borrow money?
A bank employee that helps customers borrow money would be called a loan officer.
Can I borrow money from a lawyer?
Well, you can borrow money from anyone if they agree to loan it to you.
Can you borrow money from your pension plan?
Can you borrow against money from your pension plan?
If I borrow money knowing it has interest - is it up to me to pay it and if I do not is that stealing?
If you borrow money on agreed terms, including the obligation to pay interest, then choose not to pay the interest, that would be stealing.
Why do farmers borrow money from the money lenders?
farmers have to borrow money to purchase seeds,fertilizers and pesticides.
When you buy U.S. government savings bond your doing so under the power given to the congress to?
The power that is given to congress is the ability to borrow money.
The best time for people to borrow money is when?
this is from social studies.the best time for people to borrow money is when
Can states borrow money?
yes. states can borrow money from citizens through government bonds
When you borrow money do you incur debt savings budgets or assets?
When you borrow money you incur debt.
