The Major Advantages of Long-Term Debt Include All the Following

question 42

Multiple Choice

The major advantages of long-term debt include all the following except:

• A)decrease in financial risk
• B)relatively low, explicit after-tax cost
• C)owners are able to maintain control
• D)increased earnings per share through using financial leverage

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Definitions:

Exhaustion

A condition of intense mental or physical tiredness, typically caused by excessive stress or overexertion.

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against infection, disease, and foreign substances.

Stress

A psychological and physical state of strain and tension resulting from demanding circumstances or situations.

B Lymphocytes

A type of white blood cell of the lymphocyte subtype that plays a significant role in the humoral immunity component of the adaptive immune system.