{"id":104946,"date":"2021-01-30T14:51:12","date_gmt":"2021-01-30T09:21:12","guid":{"rendered":"https:\/\/www.vskills.in\/certification\/tutorial\/?page_id=104946"},"modified":"2024-04-12T14:28:19","modified_gmt":"2024-04-12T08:58:19","slug":"advantage-of-debentures","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/advantage-of-debentures\/","title":{"rendered":"Advantage of Debentures"},"content":{"rendered":"\n<p>Debentures are cheaper source of funds due to the following reasons:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Interest cost is usually less than the dividend paid on shares Issuance cost is less than the cost for any other form security Tax benefits are available<\/li><li>Debentures do not dilute the control of existing shareholders since debenture holders do not have any voting rights<\/li><li>Debentures are preferred for the fixed rate of interest and since they can be redeemed when there is surplus<\/li><li>Debentures allow trading on equity<\/li><li>Debentures provide higher rates of financial return and are usually much more rewarding than government bonds or bank investments.<\/li><li>At the end of the lending period, issuing companies usually offer the choice of converting the debentures for shares (stock or equity).<\/li><li>Interest is paid to investors whether or not the issuing company makes a profit or not.<\/li><li>Debentures are transferable from investor to investor.<\/li><li>The cost of debt is lower than the cost of equity or preference shares as interest is tax deductible.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Debentures are cheaper source of funds due to the following reasons: Interest cost is usually less than the dividend paid on shares Issuance cost is less than the cost for any other form security Tax benefits are available Debentures do not dilute the control of existing shareholders since debenture holders do not have any voting&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-104946","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - 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