6. For a corporation, there is such a thing as too much debt. True or False

7. Debt is associated with a fixed contractual obligation (Interest Expense), which causes magnification of changes in Earnings Per Share in response to changes in EBIT. True or False

8. Inability to pay Interest Expense or Principal can result in default or bankruptcy. True or False

9. In the event of bankruptcy, common stockholders are first in line to be paid. True or False

10. Too much debt can impair a corporations ability to raise additional capital from both debt and equity. True or False