Which of the Following Is NOT a Benefit of Debt

question 23

Multiple Choice

Which of the following is NOT a benefit of debt financing from the acquirer's prospective?

• A)EPS accretion
• B)Tax deductibility
• C)Lack of covenants
• D)Return on equity

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Definitions:

Schedule C

This is a tax form used by sole proprietors in the United States to report their business income and expenses.

1099-MISC

A tax form used to report miscellaneous income, including fees, royalties, or rent, paid to a non-employee.

Self-Employment Tax

A levy that encompasses Social Security and Medicare contributions, mainly targeted at individuals who are self-employed.

Pharmaceutical Company

A business involved in the research, development, manufacturing, and distribution of medications.