Debt Is Generally the Least Expensive Source of Capital

question 99

Multiple Choice

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

• A)debt's fixed interest payments and finite maturity
• B)the tax deductibility of dividends paid to shareholders
• C)debt being less risky than equity and interest payments being tax deductible
• D)the secured nature of a debt obligation

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Definitions:

ECG

Also known as an electrocardiogram, it's a medical test that measures the electrical activity of the heart to identify various heart conditions.

Precordial

Pertaining to that area of the chest wall over the heart for the placement of ECG chest leads.

ECG Chest Leads

Electrodes placed on the chest during an electrocardiogram (ECG) to record the electrical activity of the heart from different angles.

Chest Wall

The area that forms the boundary of the chest cavity, including the ribs, sternum, and spine, providing protection for the thoracic organs.