The Main Advantage of Debt Financing for a Firm Is

question 10

Multiple Choice

The main advantage of debt financing for a firm is:
I. no SEC registration is required for bond issue
II. interest expense of a firm is tax deductible
III. unlevered firms have higher value than levered firms

• A) I only
• B) II only
• C) III only
• D) I and III only

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Definitions:

Blind

A condition characterized by the lack of visual perception due to physiological or neurological factors, which can range from partial to total inability to see.

Breathing-Related Sleep Disorder

Group of sleep disorders characterized by numerous brief sleep disturbances due to problems breathing.

Apnea

A temporary cessation of breathing, especially during sleep, which can lead to various health complications.

Excessive Sleepiness

A condition where an individual experiences significant and persistent drowsiness despite adequate or even prolonged night-time sleep.