Although Debt Financing Is Usually the Cheapest Component of Capital,it

question 142

Multiple Choice

Although debt financing is usually the cheapest component of capital,it cannot be used to excess because:

• A) interest rates may change.
• B) the firm's share price will increase and raise the cost of equity financing.
• C) the financial risk of the firm may increase and thus drive up the cost of all sources of financing.
• D) underwriting costs may change.

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Definitions:

CLX Timer Instruction

A specific command used within ControlLogix or similar Allen-Bradley PLC programming to implement timing functions, like delays or scheduled events.

Predefined Structure

A data structure whose format and characteristics are specified beforehand, used to organize and store data efficiently.

BOOL-Type Tags

Boolean type tags used in programming to represent binary values of true/false or 0/1.

Binary Numbers

A numeric system that represents values using two symbols, typically 0 and 1, forming the basis of all modern computer systems.