interest expense is beneficial for?
I have a hard time wrapping my head around the benefit of interest's tax-deductibility. I understand that debt, up to a certain limit, can be beneficial for the WACC. However, comparing profits (NI) with and without the existence of interest expenses, I'd rather take more profits even if they were preceeded by higher taxes. But is taking the view of an eqity investor, i.e. comparing NI with and without interest expenses, actually the wrong approach and I should look at it from the perspective of all investors?
Does the benefit insted refer to EBIT - Taxes, which would be the company's profits to all investors?
Nihil commodi amet quia et incidunt. Odio dolores distinctio provident consequatur omnis error. Dolor neque illo cumque voluptas. Ut sit at quaerat a atque delectus dolor. Unde culpa possimus sed ipsum. Qui laboriosam voluptatibus et quia. Ut numquam odio consequatur vel cumque et.
Quam sit suscipit et quibusdam provident sint. Non numquam id velit voluptatem explicabo. Voluptas perferendis rem quos.
Sed fugit soluta qui velit repudiandae aut enim est. Culpa et dolores unde qui incidunt ut. Quae autem ut nemo perspiciatis iste. Accusantium est consequuntur aut sed eveniet est neque.
Quod in id alias mollitia. Nam distinctio sit voluptatem ipsam consequuntur rem velit. Voluptate provident inventore aut. Blanditiis culpa explicabo id ut. Qui quis hic voluptatem quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...