Interest on debt is tax deductible and dividend on stock

Assignment Help Financial Management

Reference no: EM13828737

1. Since interest on debt is tax deductible and dividend on stock is not. Companies are financially better off issuing as much debt as possible.

True or false? explain.

2. The optimal capital structure is the same for all the companies in the each industry.

True or false? explain.

Reference no: EM13828737

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