If a Firm That's Doing Very Well Pays the Same

question 144

Multiple Choice

If a firm that's doing very well pays the same return to equity and debt shareholders, and needs to raise more money, it may be wise to use debt because:

• A)interest is tax deductible resulting in a lower cost to the firm.
• B)Equity is the less desirable source of capital.
• C)borrowing is always less of an effort than raising additional equity capital.
• D)All of the above

---

Definitions:

Knock.Com

A real estate technology company that makes buying or selling homes more convenient by streamlining various processes.

Realtor.Com

Realtor.com is a real estate listings website that provides comprehensive information about homes for sale, apartments for rent, and insights about properties and neighborhoods to help users make informed decisions.

Financial Analysts

Professionals who assess the financial health of businesses, projects, or securities and provide investment recommendations based on their analyses.

Knowledge Workers

Individuals whose primary job involves processing and working with information, requiring specialized knowledge or technical skills.