Debt Is Generally the Least Expensive Source of Capital

question 83

Multiple Choice

Debt is generally the least expensive source of capital. This is primarily due to

• A) fixed interest payments.
• B) its position in the priority of claims on assets and earnings in the event of liquidation.
• C) the tax deductibility of interest payments.
• D) the secured nature of a debt obligation.

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Outplacement Firm

A service provider that assists laid-off employees in finding new jobs, often employed by the former employer to help reduce the impact of layoffs.

Concerned

A state of being worried or anxious about something.

Contractual Obligations

Legal agreements and duties that parties must fulfill as part of a contract, often enforceable by law.

Individual

pertains to a single human being as distinct from a group, class, or family.