One of the Most Important Factors in Making Debt Less

question 86

Multiple Choice

One of the most important factors in making debt less expensive than equity is:

• A) the seniority of equity obligations to debt claims.
• B) the tax deductibility of dividends.
• C) the tax deductibility of equity.
• D) the seniority of debt obligations to equity claims.

---

Definitions:

Expression

A combination of numbers, variables, and mathematical operations that represents a particular value.

X

Often used in mathematics as a variable or unknown value in equations and algebraic expressions.

Simplify

The process of altering an expression to make it easier to understand or work with, often by combining like terms or eliminating complex fractions.

Expression

An expression in mathematics is a combination of symbols, numbers, and/or variables that represents a quantity or a relationship but does not include an equality or inequality symbol.