The inexpensive nature of long -term debt in a firms, Ask an Expert

Finance

The inexpensive nature of long -term debt in a firm's capital structure is due to the fact that

a) equity capital has a fixed return

b) payments of interest on debt are tax deductibe

c) the equity holders are the true owners of the firm

d) equity holders have a higher position in the priority of claims

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92367510

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