1. Corporate interest tax shields.

In many countries tax laws provide a form of government subsidy for debt financing which does
not exist for equity financing. This arises from the corporate tax deductibility of interest against
profit. No such corporate tax shield is available for dividend payment or for retained earning.
Debt financing therefore has an advantage over equity. (Healy, 2007)
2. Advantage and disadvantage of debt and equity financing
http://www.nfib.com/article/ital-50036/
3. Compare of debt and equity
Compare: p.62
Sources of fund: p.56

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