Sumon Sheikh

Student at Jatiya Kabi Kazi Nazrul Islam University. Faculty of Business Administration, Dept. of Accounting and Information Systems.

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Mail: sumonsheikhknu@gmail.com

Is debt cheaper than equity?Sumon Sheikh's answer: Of course yes!! Debt is cheaper than equity. The main reason behind it, debt is tax free (tax reducer), i.e. when we select debt financing, it reduces the income tax. Because we must deduct the interest on debt from the EBIT (Earning Before Interest Tax) in the Comprehensi...

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