From the Viewpoint of the Issuing Corporation, Debt Represents Crucial

question 3

Multiple Choice

From the viewpoint of the issuing corporation, debt represents crucial differences from equity in all of the following ways but NOT that debt

• A) principal and interest are obligatory.
• B) Payment default may expose the firm to expensive legal actions.
• C) Interest payments are expenses and reduce taxable income.
• D) dilutes the ownership of current stockholders.

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