The Use of Debt Financing

question 59

Multiple Choice

The use of debt financing

• A) causes a manager to take on riskier projects in order to make interest payments.
• B) is more expensive than issuing equity due to the use of covenants.
• C) allows managers to make discretionary interest payments.
• D) limits the ability of managers to waste stockholders' money.

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Definitions:

Youth Criminal Justice Act

Canadian law that governs the prosecution of criminal offenses committed by young persons under the age of 18.

Family Court

A segment of the judicial system that deals with legal issues such as divorce, child custody, and other family-related matters.

Superior Trial Court

Superior trial court is a higher level court where serious cases are heard and adjudicated, possessing the authority to handle a wide range of legal disputes and appeals.

Small Claims Court

A specialized court that handles disputes involving relatively small financial amounts, simplifying the legal process.