Debt Financing Can Add Value to a Firm Because ________

question 34

Multiple Choice

Debt financing can add value to a firm because ________.

• A) it enables investors and firms to develop long term relationship through a joint business endeavor
• B) some governments allow firms to deduct interest payments from their taxes
• C) it limits the risk of bankruptcy
• D) it increases the cash flow toward the company compared to equity financing

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Definitions:

Neoprene Wetsuit

A type of insulating garment made from neoprene and used in water sports for thermal protection.

Body Glove

A brand specializing in watersports apparel and gear, including wetsuits, swimwear, and water accessories for surfers and divers.

Marquee Brands

Highly recognizable and respected brands that are well-established and command a significant amount of consumer loyalty and trust.

Internationally

Relating to activities, operations, or influence that span across multiple countries around the world.