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One reason a company may choose to issue additional debt instead of equity when raising capital is that __________. a.) it decreases the risk that
One reason a company may choose to issue additional debt instead of equity when raising capital is that __________.
- a.)
it decreases the risk that the company will default on its obligations
- b.)
there are tax advantages to debt
- c.)
too much equity can increase a company's interest rate
- d.)
debt always has a lower cost of capital
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