An Advantage of Issuing Debt Instead of Equity Is That

question 78

Multiple Choice

An advantage of issuing debt instead of equity is that

• A) interest must be paid, regardless of earnings.
• B) the interest is tax deductible.
• C) it increases solvency or liquidity risks.
• D) no leverage is possible.

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Definitions:

Homosexuality

A sexual orientation characterized by a romantic or sexual attraction to people of one's own sex.

Third-Sex People

Individuals who are identified or identify themselves as belonging to a category beyond the binary constructs of male and female.

Pledged Virgin

An individual who has made a vow of lifelong chastity, often within a religious or spiritual context, committing to a life without sexual relations.

Male Gender

Social and cultural characteristics, roles, and norms associated with being male in a society.